Mitchells & Butlers (LSE:MAB) said like-for-like sales returned to growth in the fourth quarter, rising 1.4% as weather-related disruption eased, in a pre-close trading update covering the 51 weeks to 19 September.
The pub and restaurant group, which owns brands including Harvester and Toby Carvery, reported year-to-date like-for-like sales growth of 2.1% and total sales growth of 1.2%.
The August Bank Holiday weekend delivered like-for-like sales growth of 5.3%, with pub and drink-led formats showing particularly strong drink sales.
The company said it remains confident of a full-year outturn in line with consensus expectations.
Mitchells & Butlers has kept up an accelerated investment pace, completing 222 conversions and remodels in the year to date, alongside 11 new site acquisitions, including two German leaseholds and nine UK freeholds, plus four freehold interests in existing sites.
Looking to the 2027 financial year, the company expects cost headwinds to moderate to approximately £95m from £120m in the 2026 financial year, equivalent to around 4% of its cost base.
"We are pleased to see like-for-like sales return to growth in the fourth quarter, with trading performance ahead of the market, demonstrating the strength and resilience of our diverse portfolio of brands," said chief executive Phil Urban, adding that normalised cost headwinds and its capital investment programme provide "a strong platform for further growth in earnings and long-term shareholder value".
News Intelligence what this means for the company
Mitchells & Butlers reported Q4 like-for-like sales growth of 1.4%, a return to growth after weather disruption in earlier quarters, and confirmed full-year results will match consensus. The company is maintaining an accelerated capital investment programme—222 conversions and remodels year to date—while expecting cost headwinds to moderate to £95m in FY2027 from £120m in FY2026. The August Bank Holiday weekend showed particularly strong momentum at 5.3% like-for-like growth.
The return to Q4 sales growth and confirmation of guidance removes near-term uncertainty, but the 1.4% Q4 growth rate remains modest against the 2.1% year-to-date pace, suggesting momentum is stabilising rather than accelerating. The expected £25m reduction in cost headwinds next year provides some earnings tailwind, though the company's sensitivity to wage and food inflation remains a structural headwind.
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