Home Business Stormy skies dampen the festive spirit for Mitchells & Butlers

Stormy skies dampen the festive spirit for Mitchells & Butlers

by trpliquidation
0 comment
Stormy skies dampen the festive spirit for Mitchells & Butlers

Mitchells & Butlers (M&B), the FTSE 250 pub and restaurant operator behind chains including All Bar One, Harvester and Toby Carvery, has reported strong like-for-like sales growth over Christmas, offset by weaker performance in early 2025 due to adverse weather conditions .

The business saw a 10.4 percent year-on-year increase during key festive trading weeks including Christmas Day and New Year’s Eve, while comparable sales for the full 15-week period to January 11 rose 3.9 percent. However, CEO Phil Urban said that “the cold and stormy weather of recent weeks has subsequently had a material adverse effect on trading”, blunting the positive momentum.

Despite these circumstances, Urban remains confident in M&B’s long-term prospects, noting that the group is well equipped to cope with an expected increase in costs of around £100 million under the government budget. These additional pressures include higher employer national insurance contributions and a higher minimum wage, which M&B previously warned could force stricter pricing and efficiency measures.

Industry commentators remain optimistic. Jefferies analyst James Wheatcroft suggests M&B is well positioned to outperform the competition, highlighting its strong cash generation and potential for further debt reduction. Anna Barnfather of Panmure Liberum agrees. She calls M&B’s update a “relief” against broader economic uncertainties and underlines the operator’s resilience.

M&B, which emerged from the old Bass brewery empire twenty years ago, operates 1,726 locations under well-known brands including Miller & Carter, Vintage Inns, O’Neill’s, Browns and Nicholson’s. It is majority owned by Odyzean Group, a consortium led by prominent investors Joe Lewis, John Magnier and JP McManus, who together own 56.6 percent of M&B’s shares.

Last year, M&B’s turnover rose to £2.61 billion, with operating profit rising from £98 million to £300 million and pre-tax profits reaching £199 million.


Jamie Young

Jamie is a Senior Reporter at Business Matters and brings over ten years of experience in UK SME business reporting. Jamie has a degree in Business Administration and regularly participates in industry conferences and workshops. When Jamie isn’t reporting on the latest business developments, he is passionate about mentoring emerging journalists and entrepreneurs to inspire the next generation of business leaders.

You may also like

logo

Stay informed with our comprehensive general news site, covering breaking news, politics, entertainment, technology, and more. Get timely updates, in-depth analysis, and insightful articles to keep you engaged and knowledgeable about the world’s latest events.

Subscribe

Subscribe my Newsletter for new blog posts, tips & new photos. Let's stay updated!

© 2024 – All Right Reserved.