Mitchells & Butlers LFL Sales Rise Despite Cost Inflation Challenges

Mitchells & Butlers (MAB), the operator of pubs and restaurants across the UK and Germany, released a pre-close trading update for the 51 weeks ended September 20, 2025, revealing robust sales outperformance against a backdrop of rising cost inflation.

Like-for-like sales increased by 4.2% year-to-date, driven by consistent growth in both food and drink categories. Food sales saw a YTD increase of 4.1%, while drink sales grew by 4.0%.

The strongest quarterly performance was in Q3, with total like-for-like sales up 5.0%.

Total sales for the year to date have risen by 3.9%. However, there was a mixed performance across different regions, with mid-market pubs and pub restaurants performing strongly, offset by slightly weaker sales in London within the M25 and in more premium businesses.

MAB has ramped up its capital investment program, completing 201 conversions and remodels year-to-date, compared to 185 in FY2024.

The company has also opened two new sites, an Alex in Germany and a Browns in London, alongside acquiring freehold interests in two existing locations. These investments are expected to drive future growth and enhance the customer experience.

MAB anticipates a higher level of overall cost inflation of around £130 million (approximately 6% of its cost base) for the next year. This poses a significant challenge, but the company expresses confidence in its ability to outperform the sector through effective brand positioning and ongoing cost efficiency programs, such as “Ignite.”

Phil Urban, Chief Executive, commented, “We are pleased with our performance over the year, in which we remained consistently ahead of the market, across all market segments. Sales growth has been broad-based, with strong like-for-like performances in both food and drink across our portfolio of brands, supported by cost efficiencies and a capital programme which continues to deliver strong returns.”