The Mitchells & Butlers (LON: MAB) share price rallied more than 2% to 295p on Tuesday after the pub and restaurant group reported continued strong trading in its third-quarter update.
The stock initially climbed as high as 308p at the open and is now up 16.6% year-to-date.
The company said like-for-like sales for the 42 weeks to 19 July grew 4.5%, with growth in both food and drink accelerating in the third quarter. Overall sales for the year to date are up 4.4%.
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“Sales growth has remained well ahead of the market,” Mitchells & Butlers said, highlighting the benefit of favourable weather and Easter timing.
Food sales rose 4.9% in the latest 14-week period, while drink sales grew 4.8%.
Chief Executive Phil Urban said: “The business continues to perform strongly, enabling us to meet the cost challenges facing the sector with confidence.”
The group has completed 150 site remodels and conversions so far this year, alongside two new openings. It also secured two freehold acquisitions and is pushing ahead with energy efficiency measures, including the installation of solar panels and sensors.
Looking ahead, Mitchells & Butlers said it now expects results for the full year to come in at the top end of consensus forecasts, citing continued momentum and the strength of its brand portfolio and locations.
“With the unique strengths of our business, including a diverse portfolio of established brands, value proposition and enviable estate locations, we believe we are positioned to continue to grow profitability and market share,” added Urban.
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