By Anthony O. Goriainoff
Mitchells & Butlers PLC said on Thursday third-quarter like-for-like sales rose 0.9% from fiscal 2019, but total year-to-date sales fell 1.6% mainly due to Covid-19 related closures in the first part. of the year and site disposals since 2019.
The British pub and restaurant operator said comparable sales were strong at the start of the three months to July 16 – with food continuing to be the main driver – but fell over the period, including the weekend -end of the Jubilee, the industrial action and the recent very hot weather.
The company said inflationary cost pressures continued to challenge the company and the hospitality industry as a whole. He added that utility, wage and food costs will persist at or above current levels through fiscal 2024, and that will increase and prolong the medium-term effect on margins.
“The business environment remains very challenging with inflationary costs compressing consumer discretionary spending and putting pressure on industry margins. In the face of these challenges, we remain focused on driving sales and efficiency through to our Ignite program and the continuation of our capital investment plan which we are delighted to see a strong increase in sales,” said Managing Director Phil Urban.
Write to Anthony O. Goriainoff at [email protected]