Pub group Mitchells & Butlers Plc and Butlers said first quarter like-for-like sales grew to 4.5%, driven by a strong Christmas period.
The All Bar One and Harvester owner said LFL sales from Christmas Eve to New Year's Day rose 10.5%.
"Sales growth strengthened through the first quarter, and we remain confident in our ability to manage the £130m of year-on-year cost headwinds we expect to face this financial year, driven primarily by increased labour costs and food cost inflation," the company said in a trading statement on Thursday.
Reporting by Frank Prenesti for Sharecast.com