Mitchells & Butlers has expressed optimism regarding its annual outlook following a robust start to the year. Sales surged significantly during the festive season, with expectations of pre-tax yearly profits aligning with the higher end of current consensus estimates. This positive performance can be attributed to increased customer visits to the company's pubs during Christmas.
CEO Phil Urban noted, "Growth was robust on key dates, with record sales for Christmas day based on 229,000 meals served, supported by strong trading in the run-up to Christmas."
In the first 15 weeks of the fiscal year starting on October 1, like-for-like sales demonstrated substantial growth, amounting to 7.7%, compared to the initial eight weeks' growth rate of 7.2%.
Moreover, the company had previously anticipated an overall reduction in annual costs from £175 million to approximately £65 million, driven by lower energy prices and slowing food inflation. It is now reassuring to see that overall cost pressures are diminishing.
Mitchells & Butlers' upbeat performance is a promising sign, especially when many British pubs and restaurants are concerned about economic uncertainties affecting consumer spending. This positive trajectory suggests resilience and adaptability in the face of challenging circumstances.
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