All Bar One owner toasts rising revenues as cost pressures start to ease
Mitchells & Butlers (M&B) share price soared over five per cent this morning, as the pub and restaurant chain revealed a 9.7 per cent rise in revenues in the third quarter.
The All Bar One owner was bolstered by a record breaking Fathers Day in June, with like-for-like sales in food and drink during the quarter up 11.6 per cent and 7.4 per cent respectively.
M&B, which also owns budget roast restaurant Toby Carvery, also said it saw signs that cost inflation was starting to “abate”, allowing the group to rebuild its margins towards pre-Covid levels.
Rising costs fuelled by Russia’s invasion of Ukraine has impacted the balance sheet of many publicans in recent months.
However, demand from customers has helped offset these issues, with many businesses now expecting to see costs fall.
Last month, budget pub chain Wetherspoons also said that its revenues were boosted by easing in energy costs.
Phil Urban, chief of M&B, said that whilst the group is mindful of the “challenging macroeconomic environment”, he is hopeful for the year ahead.
“An improving cost outlook give us confidence that the current year outturn will be at the top end of consensus expectations, with continued momentum into FY 2024,” he said.