Stonegate Pub Group Expects Return to Profitable Growth as Losses Narrow to 214m GBP

Britain’s largest pub operator, Stonegate, has reported narrowing losses and projects a return to profitable growth in 2025, marking a significant turning point for the hospitality giant. The company, which manages 4,370 venues across the UK, posted a pre-tax loss of £214 million for the 53-week period ending 29 September, an improvement from the previous year’s £257 million deficit.

Revenue performance showed resilience, with a modest increase to £1.7 billion, despite ongoing macroeconomic challenges and persistent cost-of-living pressures. The group’s strategic divestment programme saw the disposal of 70 underperforming sites, alongside seven additional properties, generating £58 million in proceeds.

David McDowall, who assumed the chief executive position in early 2023 after transitioning from BrewDog, expressed optimism about the company’s trajectory. Trading conditions have shown improvement in the second quarter of 2025, notwithstanding adverse weather conditions and ongoing cost pressures.

The pub operator, which became the nation’s largest following its £3 billion acquisition of Ei Group in 2020, maintains a diverse portfolio including popular brands such as Popworld, Slug & Lettuce, and Be At One. The merger resulted in additional debt obligations of £1.7 billion, leading to a significant refinancing effort last summer when TDR Capital, which also owns Asda, invested £250 million into the business.

The company’s journey under TDR Capital’s ownership began in 2010 with the acquisition of 333 pubs from Mitchells & Butlers. The latest financial results and strategic initiatives suggest Stonegate is positioning itself for sustainable growth in the competitive UK hospitality sector.