Mitchells & Butlers profits soar by 26% as food sales increase

23rd November 2010, 8:57am

UK pub company, Mitchells & Butlers, has announced pre-tax profits up 26% to £169 million as the company's plan to focus on food sales pays off.

Like-for-like food and drink sales were up 4.7% and 1.4% respectively during the 52 weeks to 25th September 2010.

In the last eight weeks of trading to 20th November 2010, food sales have risen by 7%.

Commenting on the results, Adam Fowle, chief executive, said: "Excellent progress has been made against our strategic goal to turn Mitchells & Butlers into a food-led business by concentrating our industry leading brands on the informal eating-out market. This strategy continues to prove effective with 7% like-for-like food sales growth in the first eight weeks driven by customers trading up the menu."

Food is now 47% of sales and M&B estimates that around two thirds of its total sales relate to a food occasion.

M&B added that the outlook for consumer spending remains uncertain in light of government spending cuts and the VAT increase in January.

Mitchells & Butlers' brands include Harvester, Toby Carvery, Vintage Inns, Premium Country Dining Group, Crown Carveries, Sizzling Pub Co., Browns, Miller & Carter, Metro Professionals, All Bar One, Nicholson's, O'Neill's and Ember Inns.

Related Articles:

• 24 Jan 2011 - M&B's John Lovering to step down as chairman
• 17 Sep 2010 - Bay Restaurant Group sells ha ha bar & grill to Mitchells and Butlers for £20m
• 20 Aug 2010 - Mitchells & Butlers to sell over 300 pubs for an estimated £373m
• 10 Aug 2010 - Mitchells & Butlers pub group sells Hollywood Bowl for £39m
• 21 Jul 2010 - Mitchells & Butlers continue to reposition with disposal of 52 lodges
• 19 May 2010 - Mitchells & Butlers pub group reports strong trading
• 24 Mar 2010 - Mitchells & Butlers to reposition food-led pub businesses

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