Mitchells & Butlers (M&B), a prominent pub and restaurant operator, experienced significant growth in like-for-like sales during the festive season, with a notable 10.4% increase in key trading weeks encompassing Christmas and New Year's Eve. Despite this positive momentum, the company faced a setback in early 2025 as adverse weather conditions negatively affected trading performance, as mentioned by CEO Phil Urban.
Urban expressed confidence in M&B's ability to navigate challenges, emphasizing that the company is well-prepared to handle anticipated cost escalations, including higher national insurance contributions and an increased minimum wage following the government's budget announcement. Industry analysts, such as Jefferies' James Wheatcroft and Panmure Liberum's Anna Barnfather, have shown optimism towards M&B's resilience and growth potential, citing factors like strong cash generation and the company's proactive approach to debt reduction.
Operating under a variety of well-known brands like Miller & Carter and Vintage Inns, Mitchells & Butlers operates a vast network of 1,726 venues and is majority-owned by the Odyzean Group, led by prominent investors like Joe Lewis and John Magnier. The company's financial performance in the previous year showcased significant revenue growth, with impressive surges in operating profit and pre-tax profits, indicating a robust position in the market.