Mitchells & Butlers reports 2.6% like-for-likes over festive period: Mitchells & Butlers has reported 2.6% like-for-like sales growth over the three-week festive period to 4 January. Like-for-like food volumes increased by 1.3%, selling 6.9m meals across the estate. Trading on Christmas Day was particularly strong, with like-for-like sales growth of 7.5% and 193,000 meals sold. Year to date like-for-like sales are up 2.0%, assisted by strong festive trading and milder weather compared to last year. The company said: “We have opened ten new sites in the financial year to date (including the four sites acquired from Convivial London Pubs) as we accelerate investment into the expansion of selected brands. The investment into our new pub systems is progressing on schedule with encouraging results, with nearly 400 now installed. There has been no material change to the financial position of the business since the full year results announcement.” Chief executive Alistair Darby said: “We have delivered a strong trading performance over our busiest time of the year, with good sales growth. I was delighted that almost 200,000 people shared their Christmas Day with us and would like to thank the 18,000 staff who worked with such enthusiasm to provide them with a great experience. We are reducing staff turnover, modernising our systems, increasing guest satisfaction and delivering against our transformation plan to create sustainable value for shareholders.”

Fuller’s reports 7.2% like-for-like sales growth in ten most recent weeks: London brewer and retailer Fuller’s has reported like-for-like sales in managed pubs and Hotels grew 7.7% for the period in the 43 weeks to 25 January and by 7.2% in the ten weeks since the company last reported. Like-for-like profits in the tenanted inns division grew by 2% during the period, while total beer and cider volumes in the Fuller’s Beer Company grew by 1%. Fuller’s stated: “The company continues to benefit from a strong balance sheet and good cash generation. The freehold purchase of The Distillers, Hammersmith and the completion of the deferred purchase of the freehold of The Lamb & Flag, Covent Garden, both in the third quarter, led to a slight rise in net debt as at 28 December 2013 to £137.7m, against £131.4m at the half year. Net debt to Ebitda also increased slightly from 2.5 times at the half year to 2.6 times.” Chief executive Simon Emeny said: “We have had a good year so far, including a record Christmas, and it’s great to see so many customers enjoying our pubs. Our commitment to three key principles - an unrivalled portfolio of premium brands, engaging service, and freshly-cooked food delivered in a stylish environment – continues to pay off through attracting new customers and giving our regulars even more reasons to visit. As a result of this good performance we have decided to bring some additional projects forward into this financial year. Obviously there are some costs associated with this move, but we believe it makes better business sense to further improve our pubs at the earliest opportunity. We are confident of meeting our expectations for the full year and look forward to updating the market on 6 June 2014, when we announce the company’s preliminary results for the 52 weeks to 29 March 2014. Numis Securities leisure analyst Douglas Jack, issuing an Add recommendation with a Target Price on Fuller’s shares of 1050p, said: “We are holding our forecasts. Although trading is ahead, a few major refurbishment projects are being brought forward into 2014E, bringing additional refurbishment downtime, repairs and re-launch costs. However, this and ongoing strong trading increases the forecast upside for 2015E. With net debt/Ebitda at 2.6x, the greatest potential upside remains through faster expansion, which the company has the capability to exploit.”