Pint, food prices set to rise: 5 FTSE stocks to buy now

Highlights

  • The prices of food and drinks are all set to rise amid the increasing costs of running venues.
  • Increasing construction costs and higher wages will lead to higher prices for drinks at pubs.
  • The UK Government has recently dropped its plans to introduce vaccine passports in England for entering nightclubs and other such crowded venues.

A recent report has stated that the prices of drinks and food is going to soar up amid the surging costs to run venues due to increasing costs. Even City Pub Group executive chairman Clive Watson said that pub regulars will have to pay more for their favourite drink very soon.

With increasing construction costs and higher wage rates needed to attract labour, the overall cost of buying a drink at a pub is bound to rise for consumers. According to Watson, cost inflation is being witnessed across sectors and it isn’t stopping for now. He says that the impact will not only be visible for pubs, but also for the industry as a whole, and thus prices at the pub will have to be increased to compensate for the 4% inflation.

FTSE Stocks to Buy amid rising prices

 

A few days ago, the UK Government laid aside its plans of introducing vaccine passports in England for entering nightclubs and other such crowded venues. The move was welcomed by the industry as it will help in gaining the confidence of customers and the workforce to rebuild the hard-hit sector and overcome the negative impact of the pandemic.

ALSO READ: 5 hospitality stocks returning between 60% to 100%: Buy call?

Let’s take a look at some of the UK hospitality stocks which may be impacted by the surge in prices.

City Pub Group Plc (LON: CPC)

Headquartered in London, City Pub Group PLC is a UK-based company that owns, operates, and manages an estate of pubs, while offering fantastic beer, delicious food and excellent service. With a current market capitalisation of £120.36 million, the company is listed on the London Stock Exchange since 2017 and is a constituent of the FTSE AIM All-Share index. It has given a return of 106.90% in 1 year. The previous close price of City Pub Group plc’s shares was GBX 116.00 as on 23 September 2021.

Restaurant Group Plc (LON: RTN)

The Restaurant Group plc manages famous brands include Chiquito, Firejacks, Coast to Coast, and Garfunkel's etc. With a current market capitalisation of £826.24 million, the company is listed on the London Stock Exchange since 1969 and is a constituent of the FTSE 250 index. It has given a return of 128.67% in 1 year. The previous close price of Restaurant Group plc’s shares was GBX 108.00 as on 23 September 2021.

ALSO READ: 3 FTSE pub stocks if you are looking to enter the hospitality space

Mitchells & Butlers Plc (LON: MAB)

Mitchells & Butlers plc runs and manages a chain of pubs, bars and restaurants. It is also engaged in activities like leisure retailing and property leasing. With a significant market capitalisation of £1,597.74 million at present, the company is listed on the London Stock since 2003 and is a constituent of the FTSE 250 index. It has given a return of 119.78% in 1 year. The previous close price of Mitchells & Butlers plc’s shares was GBX 267.80 as on 23 September 2021.

Young & Co.'s Brewery Plc (LON: YNGA)

Headquartered in London, Young & Co.'s Brewery plc is engaged in operating and managing pubs and hotels across the UK. The company has two fragments: Managed Houses and Ram Pub Company. With a current market capitalisation of £522.97 million, the company is listed on the London Stock Exchange since 2005 and is a constituent of the FTSE AIM UK 50 index. It has given a return of 76.16% in 1 year. The previous close price of Young & Co.'s Brewery plc’s shares was GBX 1,520.00 as on 23 September 2021.

Loungers Plc (LON: LGRS)

Loungers PLC manages cafes and restaurants under the brands: Lounge and Cosy Club. With a current market capitalisation of £295.37 million, the company is listed on the London Stock Exchange since 2019 and is a constituent of the FTSE AIM All-Share index. It has given a return of 107.17% in 1 year. The previous close price of Loungers plc’s shares was GBX 287.50 as on 23 September 2021. 

ALSO READ: Whitbread (WTB) & Marston’s (MARS): 2 FTSE hospitality shares to buy

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