Mitchells & Butlers (M&B) has reported a decline in food sales after hot summer weather reduced demand for steak dinners and carvery lunches. The pub and bar group's shares fell on Thursday following the announcement.
The company said sales were flat across its venues in the quarter to July 18 compared with the same period last year. M&B attributed the performance to "exceptional" heat that particularly affected its food-led brands, including Toby Carvery and Miller & Carter steakhouse.
Food sales fall 2.4%
Food sales across the group, which also operates Harvester and Sizzling Pubs, dropped by 2.4% over the quarter. Bosses noted that trading was also impacted by the early timing of Easter compared with the previous year.
In contrast, drink-led venues performed better, supported by strong trading during key World Cup days. Drink sales rose by 2.6% for the quarter, M&B said.
Slower trading compared to first half
The flat quarterly performance marks a slowdown from the first half of the financial year, when like-for-like sales increased by 3.3%, buoyed by stronger food sales. For the 42 weeks to date, like-for-like sales are up 2.2%.
The group told shareholders that cost inflation guidance remains unchanged at around £120 million for the year. M&B also accelerated its investment programme, completing 181 site conversions and remodels, and acquired 10 new sites, including eight freehold properties in the UK.
CEO comments on resilience
Chief executive Phil Urban said: "Our business has performed with resilience during a quarter characterised by unusual weather patterns. The strength of our diversified portfolio has moderated the impact of external factors and together with the continued success of our investment programme and Ignite initiatives we remain confident in delivering our full-year expectations."
