UK's Mitchells & Butlers Q3 like-for-like sales hit by heatwave
UK's Mitchells & Butlers Q3 like-for-like sales hit by heatwave 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:
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% .
Inflation-weary customers and rising energy costs from the Iran war has pressured British pubs and restaurants, grappling with high labour costs and taxes.
The recent heatwave in Europe has presented an additional challenge, with customers increasingly cutting back on visiting restaurants.
The group said its food-led businesses, particularly Toby Carvery and Miller & Carter, was adversely affected in the third quarter.
Conversely pubs and other drink-led brands generally performed well buoyed by the soccer World Cup, similar to its peers.
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.
Easter falling early this year also presented a headwind, as the holiday fell in the third quarter last year, said the company.
The company said it expects to deliver full-year outturn in line with consensus expectations, supported by its investment strategy and cost-savings programme.
(Reporting by Simone Lobo in Bengaluru; Editing by Nivedita Bhattacharjee)
((Simone.Lobo@thomsonreuters.com, +919920570373))