Highlights

  • Like-for-like sales rose 7.7% during the core festive trading period.
  • Five key festive days delivered combined like-for-like sales growth of 10.5%.
  • Estate investment continued with 51 conversions and remodels completed year to date.

Mitchells & Butlers plc (LSE:MAB) released its first-quarter trading update for the 15 weeks ended 10 January 2026, outlining improved sales trends across its brand portfolio during the festive period. The update reflects trading activity through a key seasonal window for the hospitality sector, particularly across food and drink-led formats.

During the core three-week festive trading period, like-for-like sales increased by 7.7%, supported by higher customer volumes. Performance was more pronounced across five key festive days, which together generated like-for-like sales growth of 10.5%. These dates represented a notable contribution to overall quarterly performance.

Like-for-Like Sales Show Sequential Improvement
Across the full 15-week period, Mitchells & Butlers reported total like-for-like sales growth of 4.5%, with improvements seen across both food and drink categories. Food sales increased by 5.1% on a like-for-like basis, while drink sales rose 3.8%.

The data shows an acceleration in the latter part of the quarter. Over the final seven weeks to 10 January 2026, food like-for-like sales increased by 5.6%, compared with 4.6% in the first eight weeks. Drink sales also showed a similar pattern, rising 4.7% in the later period versus 2.8% earlier in the quarter.

Total sales for the year to date increased by 3.5%, reflecting the combined effect of like-for-like growth and changes in the estate.

Ongoing Estate Investment Activity
Investment in the estate remained a focus during the period. The company completed 51 conversions and remodels in the year to date, continuing its programme of site upgrades and brand format changes. Management indicated that returns from these investments remain encouraging, based on internal performance assessments.

These projects form part of a broader strategy to maintain relevance across different customer occasions and trading formats within the group’s portfolio.

Cost Environment and Financial Outlook
Looking ahead, Mitchells & Butlers highlighted expectations of approximately GBP 130m in year-on-year cost pressures during the current financial year. These headwinds are primarily linked to higher labour costs and food cost inflation.

Sales growth strengthened as the first quarter progressed, and the company stated it remains focused on managing these cost increases through its ongoing efficiency and investment initiatives.

Share Performance
MAB shares trade at 279.00 GBX, up 1.46% at the time of writing.