Mitchells & Butlers Sees Festive Sales Surge; Navigates Cost Headwinds

Mitchells & Butlers (MAB), the UK-based pub and restaurant group, toasted a strong first quarter, fueled by robust festive trading. Like-for-like sales growth accelerated to 4.5% in the 15 weeks ended January 10, 2026, significantly outpacing the broader market.

The engine of this growth was a 7.7% surge in like-for-like sales during the core three-week festive period (December 14, 2025, to January 3, 2026). Key festive days, including Christmas Eve, Christmas Day, Boxing Day, New Year's Eve, and New Year's Day, collectively saw an impressive 10.5% increase in like-for-like sales. Christmas Day set a new all-time sales record.

Breaking down the numbers, food sales grew by 5.1% and drink sales by 3.8% over the 15-week period. Total sales for the year to date increased by 3.5%. This performance indicates that MAB's diverse brand portfolio resonated well with consumers during the critical holiday season.

The company continues to invest heavily in its estate, completing 51 conversions and remodels in the year to date. MAB reports encouraging returns on these investments, suggesting a strategic allocation of capital to enhance the customer experience and drive sales.

However, MAB acknowledges facing substantial cost pressures. The group anticipates approximately £130 million in year-on-year cost headwinds for the financial year, primarily driven by rising labor costs and food cost inflation.

Phil Urban, Chief Executive, commented: “We are pleased to report another exceptionally strong festive trading period… Our focus remains on tackling the significant cost headwinds faced by the industry this financial year through the effective execution of our Ignite programme and our successful capital investment programme, driving both cost efficiencies and increased sales.”

MAB's focus on cost management and continued investment in its estate positions it to navigate the challenging economic environment and further grow market share.