- Mitchells & Butlers PLC
Mitchells & Butler (M&B) are one of the UK’s leading food service companies, owning brands such as Harvester, Toby Carvery, Browns and Miller & Carter alongside others.
M&B’s full financial statement for 2018 indicates the company achieved like-for-like sales growth of 1.3% in the financial year, despite periods of snow and unusual hot weather in the summer. Overall M&B’s profits (£303m) were down £5m compared to the previous year but capital expenditure increased by £2m (£171m), possibly as a result of 7 new sites opening and 232 conversions and remodels.
Chief Executive Phil Urban said: “We have maintained our strategic approach with three priority areas focused on repositioning the Company to a stronger competitive position. Overall, I am pleased with the momentum we have built and with the activity that is underway within the business. However, the spectre of an uncertain Brexit outcome and political instability means that we remain cautious about the short and medium term future.”
- Compass
The Compass Group UK are the market leading group in contract catering and facilities management support service. Compass work in a range of sectors including education, healthcare, senior living, and sport and leisure.
Compass’ full year financial statement for 2018 highlights a like-for-like revenue growth of 1.5%: this could reflect a sensible price increases partially offset by weak volumes in their commodity related business. Underlying operating profit also increased by 7.1% on a constant currency basis, possibly due to efforts to drive efficiencies across the business.
Group Chief Executive Dominic Blakemore said: “Compass had another very strong year. Revenue growth was healthy and we have continued to drive operating efficiencies around the business. Our expectations for FY2019 are positive. The pipeline of new contracts is strong and our focus on organic growth, efficiencies and cash gives us confidence in achieving another year of progress. In the longer term, we remain excited about the significant structural growth opportunities globally, the potential for further revenue growth and margin improvement, combined with further returns to shareholders.”
- Sodexo
Sodexo works within the food service industry supplying schools, prisons, hospitals, and military bases with hospitality services.
Sodexo’s full year financial statement for 2018 illustrates a 2% revenue growth for the year, slightly above the +1-+1.5% guidance. Yet, overall operating profits for the company were down -8.6% from last year. Sodexo is the 19th largest employer worldwide, with 460,000 employees across 72 countries serving 100 million customers daily.
CEO Denis Machuel stated: “This has been a challenging year for Sodexo, but we know what went wrong, and we know what we need to do to fix it. Healthcare and Education in North America continue to drag on our performance, and the turnaround is going to take some time. Vigorous action plans are being deployed across the organization by the new Executive Committee to address our execution issues. We are laser-focused on sales and retention, discipline and accountability. I am convinced that we are on the right path to enhance productivity, giving us the means to reinvest in accelerating growth, which is our absolute priority today. My ambition is to get growth at Sodexo back up to best in class, and I’m confident we will get there.”
- Costa
Costa is the UK market leader in the out-of-home coffee market and the second largest international, with over 3,800 stores in 32 countries.
Costa’s full year financial statement for 2018 reveals a good financial performance in line with expectations for the company, with revenue growth increasing by 7.5% to £1.3b as a result of store and Express expansion. Their UK like-for-like sales also remained positive against tough retail conditions, with profits remaining rising 0.5% to £159m.
In August 2018, The Coco-Cola Company announced its definitive agreement to acquire Costa limited. Costa Managing Director Dominic Paul said: “The Costa team and I are extremely excited to be joining The Coca-Cola Company. Costa is a fantastic business with committed and passionate associates, a great track record and enormous global potential. Being part of the Coca-Cola system will enable us to grow the business farther and faster. I would like to say a huge thank you to our customers and to everyone in the Costa team who have helped us build the business to this position, and I look forward to the next exciting chapter in Costa’s vision of Inspiring the World to Love Great Coffee.”
- McDonalds
McDonalds is the world's leading global foodservice retailer with over 37,000 locations in over 100 countries. Approximately 93% of McDonald's restaurants worldwide are owned and operated by independent local business men and women.
McDonalds’ full year financial statement reveals that despite consolidated revenues decreasing by 8% as a result of the Company’s strategic refranchising initiative, their global comparable sales increased by 4.5%, reflecting positive comparable sales across all segments. In the International Lead segment, fourth quarter comparable sales increased 5.2%, reflecting positive results across all markets, primarily driven by the U.K., Germany and Australia.
President and Chief Executive Office Steve Easterbrook remarked: “Our performance in 2018 was strong, driven by the Velocity Growth Plan with broad-based momentum across each of our global segments. We continued to transform our business by making substantial progress on modernising our restaurants and offering more convenience, choice and value to our customer. We've now achieved 14 consecutive quarters of positive global comparable sales and our customers rewarded us with more visits in 2018, helping us to achieve two consecutive years of global guest count growth for the first time since 2012."
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