British pub and restaurant operator Mitchells & Butlers has today reported annual profit above expectations, helped by tighter cost control and robust demand for food and drinks, which also bolstered sales in the new fiscal year.
The company has been relying on price increases and cost cuts to boost margins and refurbishing venues to draw more customers, as the sector reels from higher wage mandates and rising inflation that keeps customers wary of spending.
Mitchells & Butlers said like-for-like sales in the first eight weeks of fiscal 2026 were 3.8% higher, with adjusted pretax profit rising 16.5% to £246m in the full year to September 27.
Analysts had expected £237.5m, according to LSEG data.
While Mitchells & Butlers said costs will continue to be a headwind next year, it added it is confident it can mitigate the extra burden.
It forecast 2026 costs of about £130m, including the impact of Finance Minister Rachel Reeves' budget that will take more money from workers, people saving for a pension and investors.
Costs in fiscal 2025 stood at £100m.
