Pub operators have been beset with various issues over the past year or two – weak consumer confidence and sky-high business rates – and Citi doesn’t see things changing any time soon

Despite the gloomy outlook, Citi still has Greene King and Restaurant Group as ‘buys’

Shares in PLC ( ) and fellow pub chain Mitchells and Butlers PLC ( ) moved in opposite directions on Monday as Citi analysts switched their views on the stocks.

UK pub operators have seen their profits dented over the past year or so as they try to coax cash-strapped consumers through the door, all while having to deal with higher business rates.

Citi analysts see “continued tough times” for UK consumers, given the rising level of household debt and the potential for a “disorderly Brexit”.

They reckon the higher-end restaurants and bars will be fine, as will the lower-end establishments as people switch dining out for a cheaper takeaway.

“Many listed operators risk being squeezed in the middle ground,” read the note from the team, led by James Ainsley.

Citi downgraded ‘Spoons to ‘sell’ from ‘neutral’, while it went the other way with , moving the stock up to ‘neutral’ from ‘sell’.

The change sent Wetherspoon shares down 4.8% to 1,1876p, while shares rose 2.3% to 261p.

As for fellow pubs group ( ), Citi reckons it will slash its dividend in half this year. That was weighing on its shares, which were down 0.8% to 91.9p in mid-morning trading.