Sales at the group rose by 4.2 per cent over the six months ended 9 April 2011, boosted by an increase in overall food sales of 7.5 per cent.
Excluding the impact of new openings since last year, food sales were up by 5.5 per cent, compared to a 1.8 per cent increase in drink sales.
M&B: food-led strategy
Food is now M&B’s largest single product, with nearly three quarters of its sales deriving from meals and their directly associated drink sales.
Since March last year, the group has shifted its strategy to focus on the growing eating-out market, while disposing of £34m of non-core assets.
Overall, M&B reported revenue of £912m in the first half of the 2011 financial year, which generated an operating profit of £136m.
Interim chief executive Jeremy Blood said M&B’s growth strategy is on track and contributed to the reported sales increase.
Breakfast and take-aways
“Harvester’s performance has been particularly good, supported by its new advertising campaign together with its new breakfast and take-away menus,” he said.
“We have successfully positioned Mitchells & Butlers more firmly within the eating-out market with nearly three quarters of our revenue now generated around eating-out.
Expansion plans
Following the £373m sale of wet-led pubs to Stonegate, completed in November, M&B now has almost 1,600 restaurants and pubs across its brands, with plans to open a further 50 new sites this year from its brand roll-out.
During the period, it spent £53m on 29 new openings and 31 conversions, and says that the early performance of its new retail park investments and the Ha Ha Bar & Grill acquisition has been “encouraging”.
By the end of the year, M&B expects to spend £75m on expansions, of which £50m will be on new site acquisitions, with the pace of expansion expected to increase in 2012.