Mitchells & Butlers (LSE:MAB) delivered a robust start to the financial year, reporting like-for-like sales growth of 4.5% over the 15 weeks to 10 January 2026, with total sales up 3.5%, comfortably ahead of wider market trends. Trading over the festive period was a standout, with like-for-like sales rising 7.7% during the core three-week holiday window and jumping 10.5% across the five key festive days, culminating in a record-breaking Christmas Day for the group.
The company continued to invest significantly in its estate, completing 51 conversions and refurbishments so far this year. Management said returns from this capital programme remain encouraging, supporting confidence in the group’s long-term strategy. Alongside these investments, Mitchells & Butlers is progressing its Ignite efficiency programme, which, together with strong brand positioning, is expected to help the business absorb around £130m of cost pressures from higher labour and food costs in the current financial year while still gaining market share.
From an investment perspective, the outlook reflects a mixed financial picture. Operational efficiency and a solid equity base provide support, but challenges remain around revenue momentum and cash flow generation. Technical indicators point to a broadly neutral trading stance, while valuation metrics suggest the shares may be undervalued. Limited disclosure from earnings calls and a lack of recent corporate events restrict further insight.
More about Mitchells & Butlers
Mitchells & Butlers is a leading operator of managed restaurants, pubs and bars, with a diverse portfolio of well-known brands including Harvester, Toby Carvery, All Bar One and Miller & Carter, alongside Innkeeper’s Collection hotels in the UK and Alex restaurants and bars in Germany. The group focuses on branded eating and drinking-out concepts, leveraging prime locations and established formats to capture demand across the UK and selected European markets.
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