All Bar One owner Mitchells & Butlers cheers rise in profit amid food and drink demand
All Bar One owner Mitchells & Butlers has toasted a rise in full-year profit as rising appetite for its food and drinks offset fears of a slowdown in the casual dining sector.
Shares in the firm jumped seven per cent in early morning trading.
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The group, which owns chains including Toby Carvery, Harvester and All Bar One, posted adjusted operating profit of £317m in the 12 months to 28 September, rising from £303m in the same period a year earlier.
Revenue jumped from £2.15bn to £2.23bn, with boss Phil Urban hailing “an improvement in like-for-like sales growth across the portfolio during the year”.
With more than 1,700 sites across its pub and restaurant estate, Mitchells & Butlers has faced rising costs from business rates and higher wages in recent months.
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Total sales rose almost four per cent, while like-for-like sales climbed 1.4 per cent during the first seven weeks of the new financial year.
The rise in profit comes against a backdrop of concerns over the future of major retailers in the casual dining sector, many of which have closed outlets or cut costs in the wake of tougher trading conditions.
Jamie’s Italian, Gaucho and Gourmet Burger Kitchen have been among the dining groups to announce closures or embark on a controversial insolvency restructuring in the last year.