Mitchells & Butlers, with 1,716 managed and franchised outlets across the UK, have announced strong trading in their half year results ending 13 April 2024. With sales growth of 7%, operating profit growth of 64% (to £164m) and revenues of £1,396m, they expect the strong performance to continue through 2025 as falling inflation rates and increasing disposable income have a positive impact on consumer confidence.
Mitchells & Butlers portfolio of brands and formats includes Harvester, Toby Carvery, All Bar One, Miller & Carter, Premium Country Pubs, Sizzling Pubs, Stonehouse, Vintage Inns, Browns, Castle, Nicholson’s, O’Neill’s, Ember Inns and Ego Restaurants. In addition, it operates Innkeeper’s Collection hotels in the UK and Alex restaurants and bars in Germany.
Phil Urban, Chief Executive, said, “Continued like-for-like sales outperformance against the market coupled with easing inflationary costs and focus on efficiencies has resulted in very strong profit recovery for the period.
We remain focused on our Ignite programme of initiatives and our successful capital investment programme, driving further cost efficiencies and increased sales. We have confidence that continued focus on effective delivery of our strategic priorities will generate further value from our enviable estate portfolio and customer offers, enabling us to build further momentum throughout the year, with a strong foundation for long term outperformance.”
In June 2023 they completed the acquisition of the remaining 60% stake in 3Sixty Restaurants Limited, owners of Ego Restaurants, having acquired the initial 40% stake in August 2018 and, in May 2024, they completed the acquisition of Pesto Restaurants saying, “The brand delivers an Italian Tapas offer across its ten strong estate which, as with the Ego acquisition, helps us to further diversify and premiumise our brand portfolio.”
With the UK total eating out market forecast to grow by c.2.4% from 2024 to 2027 and with branded restaurants expected to see continued growth, M&B intend to continue to improve their digital capacity to drive sales by tailoring offers to their individual customers as well continued training of their managers including upselling and customer service skills.