July 23 (Reuters) – British pub group Mitchells & Butlers (MAB.L), on Thursday reported flat third quarter like-for-like sales, citing adverse impact on its food business from the ongoing heatwave , echoing comments from larger rival J D Wetherspoon (JDW.L) .
Here are some more details:
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While like-for-like sales for the third quarter of fiscal year 2026 were flat, year-to-date like-for-like sales for 42 weeks ended July 18, 2026 rose 2.2% .
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Inflation-weary customers and rising energy costs from the Iran war has pressured British pubs and restaurants, grappling with high labour costs and taxes.
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The recent heatwave in Europe has presented an additional challenge, with customers increasingly cutting back on visiting restaurants.
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The group said its food-led businesses, particularly Toby Carvery and Miller & Carter, was adversely affected in the third quarter.
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Conversely pubs and other drink-led brands generally performed well buoyed by the soccer World Cup, similar to its peers.
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Newly instated British Prime Minister Andy Burnham announced that the Labour Government would lower business rates for pubs, clubs and live music venues, in a move that could provide much needed relief to the sector.
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Easter falling early this year also presented a headwind, as the holiday fell in the third quarter last year, said the company.
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The company said it expects to deliver full-year outturn in line with consensus expectations, supported by its investment strategy and cost-savings programme.
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Reporting by Simone Lobo in Bengaluru; Editing by Nivedita Bhattacharjee.
