Mitchells & Butlers (M&B), the FTSE 250 pub and restaurant operator behind chains including All Bar One, Harvester and Toby Carvery, has reported strong growth in like-for-like Christmas sales, offset by weak performance at the start of -2025 due to bad weather. .
The company enjoyed a 10.4 per cent year-on-year increase in key festive trading weeks, including Christmas and New Year, while like-for-like sales for the full 15-week period to 11 January rose 3.9 per cent. However, CEO Phil Urban said “cold weather and storms in recent weeks have had a negative impact on trading”, dampening the positive momentum.
Despite these circumstances, Urban remains confident about M&B’s long-term prospects, noting that the group is well-equipped to handle a forecast increase of around £100 million in costs following the government’s budget. These added pressures include higher employers’ national insurance contributions and increases in the minimum wage, which M&B previously warned could force tougher measures on pricing and efficiency.
Industry analysts remain optimistic. Jefferies analyst James Wheatcroft suggests M&B is poised to outperform rivals, highlighting its strong cash generation and the potential for further debt reduction. Panmure Liberum’s Anna Barnfather agrees, calling M&B’s update a “relief” against wider economic uncertainty and highlighting the operator’s resilience.
M&B, which emerged from the old Bass brewing empire two decades ago, has 1,726 locations under well-known brands such as Miller & Carter, Vintage Inns, O’Neill’s, Browns and Nicholson’s. The majority is owned by the Odyzean Group, a consortium led by prominent investors Joe Lewis, John Magnier and JP McManus, who together own 56.6 per cent of M&B’s shares.
Last year, M&B’s revenue rose to £2.61 billion, operating profit rose from £98 million to £300 million and pre-tax profit to £199 million.
