We’re almost in the last quarter of 2021, and I think this is a good time to start planning my investments for next year. In the case of growth stocks, most of the promise is seen in those parts that are still feeling the effects of the epidemic. This includes cruises, airlines and other travel-related stocks, obviously. But perhaps less explicitly, they also include pub stocks, which have seen some recovery but are still trading below pre-epidemic levels.
Mitchell and Butlers see improved performance
Consideration Mitchell and Butlers (LSE: MAB), which released a trading update earlier today. Group, which owns pub and restaurant brands All Bar One, Browns, And O’Neills, Reported encouraging numbers for the post-lockdown period. Since bars and restaurants were allowed to reopen in-house in mid-May, similar (LFL) sales have risen to 97% of their pre-epidemic level. And in the last eight weeks, which spanned two months from ‘Independence Day’, the number is even better at 104%.
This is an encouraging sign for the stock that was profitable before Covid-1. And this is going by the fact that FTSE 250 Stock is an established brand, I hope it can grow further as the epidemic subsides. Much progress has already been made, and while some uncertainty remains, this is one I am seriously considering. This is especially true as its share price is still about 0% lower than its pre-2020 high.
Fuller Smith & Turner are also recovering
Similarly, Fuller Smith and Turner There has also been some encouraging trend in the post-lockdown period earlier today. From seven weeks to 18 September, its LFL sales are 86% of their 2019 levels. It also says that domestic pubs have benefited from indoor travel during the summer months. And its London pubs are also showing a pickup in activity. Also, much like Mitchell & Butlers, its share price is also in early 2020, indicating that there is room for improvement as uncertainty declines further.
Marston can take too
Other pub stocks are worth considering. One of them Of Marston, Which is a reserve of money even after a sharp decline in early 2020. It has not recovered since then and is still trading at half the height of that time. Towards the end of July, shortly after the lifting of all bans, the pub reported better-than-expected performance due to warm weather and the Euro 2020 tournament. In this case, however, one disadvantage is that the company’s performance declined even before the epidemic. Also, it was supposed to be acquired at the beginning of the year. So, I have maintained that I will wait for further updates to see where it is.
Recovery stock that I will buy
Overall, I think pubs as a segment could grow significantly from current levels if the virus is under control. It can increase rapidly as people step out of the house with higher consumer costs. But I will wait for the detailed financial results of these companies before choosing from them.
Manika Premsingh has no position in any of the shares mentioned. Motley Flower UK has no position on any of the shares mentioned. The opinions expressed in the companies mentioned in this article may differ from those of the authors and therefore the official recommendations we make on our subscription services such as Share Advisors, Hidden Winners and Pro. Here at The Motley Flower we believe that considering a variety of insights makes us a better investor.