Mitchells & Butlers has recorded a 19% jump in its profit before tax, totalling £238m in the year to 27 September.

The pub and restaurant operator, which owns Toby Carvery, Miller & Carter and Harvester, said it had traded ahead of the market in the last 12 months, with like-for-like (LFL) sales increasing by 4.3%.

Furthermore, its revenue rose by 3% year-on-year to £2.71bn, while its operating profit increased by 7% to £322m.

Its net debt also reduced from £989m to £843m in the year to the end of September.

Chief executive at Mitchells & Butlers, Phil Urban, said: "We are pleased to report another year of strong performance. Like-for-like sales continued to outperform the market across all segments, reinforcing the strength of our strategy and market positioning. Combined with disciplined operational execution, this delivered robust profit growth mitigating sector-wide cost headwinds."

Mitchells & Butlers said that in the year ahead, it anticipates increased cost pressures across the sector, and as a result, its outlook remains uncertain.

However, it remains confident in its ability to manage these challenges through its Ignite improvement programme and disciplined capital investment strategy.

It has recorded what it has described as a solid start to the current financial year, with LFL sales increasing by 3.8% in the first eight weeks.

Following the announcement, shares in Mitchells & Butlers increased by almost 10%.

Head of markets at AJ Bell, Dan Coatsworth, said that in a struggling pub and restaurant market, the firm had managed to keep its head above water.

He concluded: "It has served up a perfectly respectable set of results with profit ticking higher, alongside signs of progress at the start of its new financial year. That resilience was enough to whet investors’ appetite and send the share price soaring. Investors must wait until another time for the dividend to return but the pace of debt reduction is promising, and it means the balance sheet is strengthening.

"Persistent cost headwinds are a challenge, particularly as the minimum wage is going up again and food price inflation continues to rear its ugly head. Mitchells & Butlers can fiddle with portion sizes and switch to cheaper cuts of meat as cost management measures, but it can only do so much without ruining the customer experience. That suggests a Sunday roast at its outlets might become a little bit more expensive in 2026."

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