Key facts
- Mitchells & Butlers reported a 2.4% decrease in food sales over the last quarter.
- The company experienced a 2.6% increase in drinks sales during the same period.
- Overall turnover for Mitchells & Butlers rose by 1.3% year-to-date.
- JD Wetherspoon issued its fourth profit warning of the year, citing rising costs.
- Shares in JD Wetherspoon fell by more than 9% on Wednesday.
The sweltering summer heat has impacted food sales at Toby Carvery, according to its owner Mitchells & Butlers. The company reported a 2.4% drop in food sales over the past three months, contrasting with a 2.6% rise in drinks sales, as customers opted for beverages over traditional roasts.
Despite the adverse effect on its food-led businesses, Mitchells & Butlers saw overall turnover climb modestly by 1.3% year-to-date. Chief executive Phil Urban stated that the company's diversified portfolio helped moderate the impact of external factors like the unusual weather patterns.
This news comes as JD Wetherspoon, another prominent pub group, issued its fourth profit warning of the year. The company cited escalating costs for food, labour, repairs, energy, and business rates, alongside marginally lower sales than anticipated in the final quarter. Shares in JD Wetherspoon fell by more than 9% on Wednesday following the announcement. The company's pre-tax profit target of £70m is already significantly below the previous year's £80m.