Mitchells & Butlers Q3 Total Sales Rise 5%, LFL Sales Up 0.8%; Margin Down

(RTTNews) - Mitchells & Butlers Plc. (MAB.L, MLB), an operator of managed restaurants and pubs, reported Wednesday that its total sales growth in the third quarter was 5 percent, bringing growth in the first 43 weeks to 8.2 percent. In its third quarter trading update, the company said its like-for-like sales edged up 0.8 percent, with strong 2.5 percent rise food sales offsetting a softer drinks performance.

As previously reported, operating margins are below last year reflecting the lower margin of Orchid ahead of full integration and sales growth being driven by food volumes.

Alistair Darby, Chief Executive, said, "This year we have continued to successfully grow our food volumes and our like-for-like sales ahead of a subdued market, in addition to integrating and converting the Orchid business as planned. These initial conversions are trading well and in line with our expectations."