Mitchells & Butlers sees FY26 in line with consensus as sales return to growth

Mitchells & Butlers reported that its fourth-quarter like-for-like sales have returned to growth, and the company anticipates its full-year results to align with market expectations. This growth is attributed to easing cost pressures and ongoing investment efforts, which should further boost profit in fiscal 2027. Like-for-like sales rose 2.1% through September 19, while fourth-quarter like-for-like sales increased 1.4% as weather-related disruptions lessened.

The August Bank Holiday weekend saw particularly strong sales, with a 5.3% increase on a like-for-like basis. Drink sales experienced a 2.7% year-to-date growth, compared to 1.8% growth in food sales. Total sales increased by 1.2% over the period. Mitchells & Butlers has maintained its accelerated investment program, completing 222 conversions and remodels so far this year and acquiring 11 new sites, including properties in Germany and the UK.

For FY2027, the company expects cost headwinds to decrease to around £95 million from £120 million in FY2026, representing roughly 4% of its cost base. The Ignite efficiency programme and capital investment efforts are expected to help offset these pressures and contribute to operating profit growth. Chief Executive Phil Urban attributed the return to growth in Q4 to demand resilience, stating that trading had outpaced market expectations.