Mitchells & Butlers Posts Higher Sales in First Half

Mitchells & Butlers said on Thursday that sales improved across its pubs and restaurants in the first half of the year, with drinks helping drive demand even as the company continued to face higher costs and a cautious consumer backdrop in Britain.

The hospitality group, which operates brands including All Bar One, Harvester and Toby Carvery, reported like-for-like sales growth of 3.3% for the 28 weeks ended April 11, compared with the same period a year earlier. Like-for-like drinks sales rose 2.4% over the period, while food sales also advanced, helping lift revenue at a time when many operators have been warning about pressure on household spending.

Adjusted operating profit came in at £181 million for the half year, according to the company’s results statement. Mitchells & Butlers said trading remained resilient despite inflation in wages, energy and other operating expenses, which continue to weigh on margins across the pub and casual dining sector.

The company said its performance reflected stronger customer visits and disciplined cost control. It also pointed to continued investment in its estate and brands as it sought to keep pace with changing consumer habits, including demand for value-led meals and drinks-led occasions.

The results offer another sign that Britain’s on-trade sector is still drawing customers, particularly for social drinking and casual dining, even as consumers remain selective about where they spend. For Mitchells & Butlers, drinks growth was notable because it suggests that pub visits are holding up beyond food-led occasions, a key indicator for operators that rely on bar sales to support profitability.

The company did not provide a detailed outlook in the excerpt reviewed, but the half-year figures indicate that trading conditions have been steadier than many investors had feared. The group’s shares and broader sector performance have been closely watched this year as analysts assess whether pubs can absorb rising labor costs without losing customers.

Mitchells & Butlers has been working to balance price increases with value offers across its brands, while also managing staffing levels and supply costs. The latest figures suggest that strategy has helped preserve demand through the winter and early spring trading periods, when hospitality businesses often face softer footfall.

The company’s update comes as the UK hospitality industry continues to navigate uneven consumer confidence, with operators looking for signs that spending on eating and drinking out can hold up through the rest of the year.