Shares soar as pub group has best day on the markets for 14 years
Brewing group Mitchells & Butlers had its best day on the stock market in 14 years after its shares rose by more than one-fifth on the back of an upbeat trading update.
On Thursday morning, the Birmingham-based group’s chief executive Phil Urban told the stock market “Sales performance since the half year has been encouraging, with strengthening like-for-likes helped by the sunny weather and continued outperformance to the market”.
Unlike its West Midlands rivals, Marston’s – whose own update 24 hours earlier had not been cheered by the market – Mitchells & Butlers’ like-for-like sales showed accelerated growth during recent weeks.
Although Urban repeated previous concerns about cost pressures and lower margins, investors strongly backed the group’s prospects.
Its shares closed up 21% at 270p, adding £150m to the company’s value which went above £1.1bn by the close. The gains reversed recent losses and put it close to its 18-month highs.
It was the group’s best single day since July 2003, when its shares rose 24%, and only the second time it has enjoyed a double-digit rise in more than seven years.
Mitchells and Butlers has around 1,700 sites operating under a number of the sector’s best-known brands, including All Bar One, Harvester and Toby Carvery.
