It's food, glorious food for M&B

The Harvester and All Bar One owner revealed a pick-up in trading as diners returned to its outlets following the World Cup.

M&B reported a 4.4 per cent increase in sales at outlets open for more than a year in the nine weeks to September 18, with food sales rising by 7.1 per cent and drink sales up 2.2 per cent.

"This is a very encouraging performance, particularly given the present consumer economy, and underlines the strength of the Mitchells & Butlers business," said chief executive Adam Fowle.

The move towards higher-margin food sales has enabled the company to improve its operating margins.

M&B, whose chains also include the Sizzling Pub company, O'Neills and Ember Inns, said it plans to invest about 200m next year on acquisitions of single sites and small packages of sites, as well as maintenance and conversions of existing pubs.

Mr Fowle said the group plans to spend 90m on expansion with 110m being invested in maintenance and conversions.

"We're keeping our options open although we feel no pressure to do larger transactions," said Mr Fowle, who added the recent spate of M&A activity in the sector could throw up opportunities.

Restaurant operators Carluccio's and Clapham House have both been recipients of recent bids.

M&B has been linked with a possible takeover of Restaurant Group, which operates the Frankie & Benny's, Chiquito and Garfunkel's chains, but Mr Fowle declined to comment on specific targets.

Last week M&B bought 22 Ha Ha Bar & Grill sites for 19.5m including three in Leeds, Sheffield and York.