Mitchells & Butlers’ Cost Rollercoaster: A Profit Warning Tale
TL;DR: Bigger bills, slimmer profits, but sales are still ticking up. The company says it can keep its head up and your stomach full.
The Numbers That Don’t Make You Smile
- Operating profits dropped by £98 million in the year to 30 September.
- “Unprecedented” cost surge: property values have slumped and wages are climbing higher than the London Eye.
- Despite the fallout, sales climbed to £2.5 billion—a tidy jump from £2.2 billion in 2022.
- Like‑for‑like sales, the holy grail for food‑chain owners, jumped 9.1%.
The Recipe for Recovery? A Little Money Here, A Little Courage There
Phil Urban, the chief executive, gave us a pep talk. “We’re excited about the strength of our trading performance and the resilience we’ve shown,” he told us. He added, “Good underlying profit growth—excluding government support—paired with record market outperformance offers a bright outlook.”
He wrapped it up by noting: the UK consumer budget is tight, but “the sales growth and a cooling cost environment give us confidence for the upcoming financial year.”
What’s the Takeaway?
Mitchells & Butlers are standing on a shaky financial foundation with rising costs, yet their sales are proving they’re still on a winning food‑trip. It’s a question of whether they can stomach the increase in expenses or will finally switch menus to propriety power‑gas.
Bottom line: buy in, buckle up, and enjoy the ride—they’re keeping a pinky‑promise of resilience on the line.
