Mitchells & Butlers Expects Strong Fiscal Year Results
Mitchells & Butlers, a leading pub-and-restaurant operator in the U.K., remains optimistic about its full fiscal year results, aiming for the high end of market expectations. Despite a slight slowdown in its fourth-quarter sales growth compared to the previous quarter, the company reported a 9.7% increase in like-for-like sales for the period ending Sept. 23, contributing to a year-to-date sales growth of 9.1%.
Food sales were the primary driver of growth in the fourth quarter, mirroring the strong performance seen in the third quarter with a 12% rise. Meanwhile, drinks sales experienced a slight deceleration, increasing by 6.4% compared to the preceding quarter's growth rate of 7.4%.
Looking ahead, Mitchells & Butlers maintains its positive outlook for the full fiscal year, anticipating results at the upper end of consensus expectations and carrying momentum into fiscal 2024.
According to estimates compiled by FactSet, the company is projected to achieve sales of £2.41 billion ($2.92 billion) and a pretax profit of £98 million.
Furthermore, Mitchells & Butlers anticipates that cost headwinds in fiscal 2023 will be at the lower end of the previously identified range of 10% to 12%. There are signs that cost inflation is starting to subside, suggesting a more favorable outlook for the company.
In summary, Mitchells & Butlers remains confident in its performance and expects robust results for the full fiscal year. With strong growth in like-for-like sales and positive momentum, the company is well-positioned for continued success in the future.
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