* 10 weeks to Sept. 19 comparable food sales up 5.8 percent
* Benefits from customers not holidaying abroad
* Managed operators outperforming tenanted rivals
* Sees FY net profit of 89-90 million pounds
* Shares down 1 percent
(Adds CEO, FD, analyst comment, shares, background)
By Matt Scuffham
LONDON, Sept 24 (Reuters) - Pubs and restaurants operator Mitchells & Butlers said on Thursday it expected full-year earnings to beat expectations as stay-at-home Britons drove a surge in food sales through the summer holiday period.
The owner of Harvester, Toby Carvery and the Sizzling Pub Co said an increasing demand for pub food had led to an acceleration in sales growth as offers including main meals for 2.99 pounds and a 5 pound all-day carvery proved popular.
M&B, which has around 2,000 pubs and restaurants, said like-for-like sales increased by 2.6 percent in the 10 weeks to Sept. 19, representing an improving sales trend. In the 51 weeks to Sept. 19, comparable sales were up 1.6 percent.
The company, which also operates All Bar One and O'Neills, said food sales had risen by 5.8 percent on a comparable basis during the 10 week period.
Charles Stanley analyst James Dawson said that was partly due to customers staying at home instead of holidaying abroad.
"It appears that the pub food offering capitalised upon stronger demand during the summer holidays presumably assisted by stay at home vacationing this year," he said.
Managed pub companies have outperformed rivals who operate tenanted or leased pubs during the recession as they are able to be more flexible in terms of pricing and promotional activity.
"It's clear that the managed model allows you an easier way to pass on your business's scale to the customer. I think that we are slightly advantaged on that front," Chief Executive Adam Fowle told reporters on a conference call.
Other managed operators have also been performing strongly.
Greene King, Whitbread and Wetherspoon have all reported sales growth in September while Punch Taverns and Enterprise Inns, which own tenanted and leased pubs, have seen sales fall.
The British Beer and Pub Association, which represents the industry, estimates that more than 50 pubs are closing each week as factors such as the recession, duty rises, and cheap offers in supermarkets encourage drinkers to stay at home.
M&B cautioned that the outlook for consumer spending is uncertain as unemployment continues to rise.
Finance Director Jeremy Townsend said M&B expected to make a full-year net profit before exceptional items of around 89 to 90 million pounds ($147.3 million). That is ahead of the consensus of 83 million, according to Reuters Estimates.
Fowle was appointed CEO in August following the resignation of Tim Clarke after the company lost money closing debt positions relating to controversial hedging arrangements. M&B stopped paying dividends last year as it focused on paying down its 2.6 billion pound debt pile and Townsend said it didn't anticipate restoring the dividend in the next 12 months.
Shares in M&B were down 1 percent to 281 pence at 0935 GMT.
Panmure Gordon retained a 'hold' stance, saying the trading statement was strong but the stock's valuation looked full. ($1=.6108 Pound) (Editing by Rhys Jones and Jon Loades-Carter)