Finance
UK's Mitchells & Butlers beats profit view, posts robust start to new year
Published by Global Banking and Finance Review
Posted on November 28, 2025
2 min readLast updated: January 20, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on November 28, 2025
2 min readLast updated: January 20, 2026
Mitchells & Butlers exceeded profit expectations with a 16.5% rise, driven by cost control and strong sales, despite inflation pressures.
(Reuters) -British pub and restaurant operator Mitchells & Butlers reported annual profit above expectations on Friday, 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.
Still, 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 246 million pounds in the full year to September 27.
Analysts had expected 237.5 million pounds, 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 130 million pounds ($171.8 million), 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 100 million pounds.
($1 = 0.7567 pounds)
(Reporting by Ankita Bora in Bengaluru; Editing by Subhranshu Sahu and Janane Venkatraman)
Profit is the financial gain obtained when the revenue generated from business activities exceeds the expenses, costs, and taxes associated with those activities.
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power. It is typically measured as an annual percentage increase.
Like-for-like sales refer to the revenue generated by a business from its existing stores or locations, excluding any new openings or closures, allowing for a more accurate performance comparison over time.
Adjusted pretax profit is a company's earnings before tax that have been modified to exclude certain non-recurring items, providing a clearer view of ongoing operational performance.
Cost control is the practice of managing and reducing business expenses to improve profitability. It involves budgeting, monitoring, and analyzing costs to ensure they remain within set limits.
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