Mitchells & Butlers plc (MAB.L) recorded a 6.2% increase in first-quarter sales, fueled by robust performance during the Christmas period. The results highlight sustained consumer demand in the UK hospitality sector despite macroeconomic headwinds.
- Mitchells & Butlers reported a 6.2% year-on-year increase in Q1 sales
- Strong Christmas trading drove performance, particularly in premium brands
- UK restaurant segment sales rose 7.1%, pub and bar division up 5.3%
- Adjusted underlying profit before tax increased 4.8%
- Company reaffirmed full-year outlook despite economic pressures
- Results signal resilience in UK hospitality sector amid cost-of-living challenges
Mitchells & Butlers plc reported a 6.2% year-on-year rise in group sales for the first quarter of the fiscal year, concluding on December 31, 2025. The improvement was primarily driven by strong trading activity during the Christmas and holiday season, a key period for UK restaurant and pub operators. The company attributed the uptick to increased customer footfall, higher average spend per visit, and effective promotional campaigns across its estate of 570 sites. The performance reflects resilience in consumer discretionary spending during a period of economic uncertainty. While inflation and cost-of-living pressures have weighed on household budgets, the hospitality sector demonstrated continued demand for in-person dining experiences, particularly around festive occasions. The company noted that its premium brands, including Harvester and Toby Carvery, outperformed the average, contributing significantly to overall growth. Sales in the UK restaurant segment rose 7.1%, while the pub and bar division saw a 5.3% increase. Adjusted underlying profit before tax rose 4.8%, indicating margin stability despite elevated input costs. The company maintained its outlook for full-year performance, citing continued momentum from ongoing marketing initiatives and operational efficiency measures. The results have positioned MAB.L favorably in the consumer discretionary sector. Investors are likely to view the Q1 figures as a positive signal for the broader UK hospitality industry, potentially influencing trading activity in related equities and exchange-traded funds focused on consumer services.