Mitchells & Butlers (MAB) AI Stock Analysis

• Market Cap: £1.56B
• Dividend Yield: N/A
• Average Volume (3M): 294.33K
• Price to Earnings (P/E): 9.3
• Beta (1Y): 0.91
• Revenue Growth: 1.95%
• EPS Growth: 275.56%
• Country: UK
• Employees: 50,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 0.17
• Shares Outstanding: 598,855,650
• 10 Day Avg. Volume: 388,606
• 30 Day Avg. Volume: 294,328
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £340.00
• Price Target Upside: 29.52% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 74 Outperform
• Price Target: 293.00p ▲(11.62% Upside)

Mitchells & Butlers' strong financial performance, characterized by revenue growth and improved profitability, is the most significant factor driving the stock score. The technical analysis presents a neutral outlook, while the valuation suggests the stock is undervalued, offering potential for appreciation. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

The company's consistent revenue growth indicates a strong market position and effective business strategies, supporting long-term financial health.

Cash Generation

Strong cash generation enhances financial flexibility, enabling strategic investments and debt reduction, which are crucial for sustainable growth.

Profitability Improvement

Improved profitability margins reflect operational efficiency and cost management, strengthening the company's competitive position and financial resilience.

Negative Factors

Significant Debt Levels

High debt levels can limit financial flexibility and increase vulnerability to economic downturns, impacting long-term stability and growth potential.

Volatility in Cash Flow

Cash flow volatility can affect the company's ability to consistently fund operations and investments, posing a risk to financial stability and growth.

Equity Position

While the equity base is strong, reliance on equity financing over debt can dilute shareholder value, potentially impacting long-term investor returns.

Mitchells & Butlers Business Overview & Revenue Model

Company Description

Mitchells & Butlers plc manages pubs, bars, and restaurants in the United Kingdom and Germany. The company operates its pubs and restaurants under the Alex, All Bar One, Browns, Castle, Ember Inns, Harvester, Innkeeper's Lodge, Miller & Carter, Nicholson's, O'Neill's, Premium Country Pubs, Sizzling Pubs, Stonehouse Pizza & Carvery, Toby Carvery, and Vintage Inns brands and formats. It also engages in the leisure retailing; property leasing, property management, and development; and financing activities, as well as operates as a healthcare trustee. In addition, the company owns various trademarks. As of September 25, 2021, it operated 1,732 pubs, bars, and restaurants. Mitchells & Butlers plc was founded in 1898 and is headquartered in Birmingham, the United Kingdom. Mitchells & Butlers plc operates as a subsidiary of Odyzean Limited.

How the Company Makes Money

Mitchells & Butlers generates revenue primarily through the sale of food and beverages in its establishments. The company operates a significant number of outlets across the UK, which allows it to attract a large customer base. The key revenue streams include sales from food and drink, which are supplemented by a growing focus on delivering takeaway and delivery services. Additionally, MAB benefits from seasonal promotions, special events, and partnerships with suppliers that enhance its product offerings and customer experience. The company also engages in strategic marketing initiatives to drive footfall to its locations, contributing positively to its earnings. Furthermore, MAB may leverage loyalty programs and private events to generate additional revenue, ensuring a diversified income approach.

Mitchells & Butlers Financial Statement Overview

Summary

Mitchells & Butlers has shown commendable financial improvement, with solid revenue growth, enhanced profitability, and strong cash flow generation. The company has effectively reduced its leverage and improved its equity position, although significant debt remains a point to monitor.

Income Statement

Mitchells & Butlers demonstrated strong revenue growth and improved profitability. The gross profit margin increased significantly to 38.15%, and the net profit margin rose to 5.71% from a negative figure in previous years, indicating a robust recovery. EBIT and EBITDA margins also showed improvement, pointing towards better operational efficiency. The positive revenue growth rate of 4.28% over the last year highlights a solid growth trajectory.

Balance Sheet

The company maintains a balanced financial structure with a debt-to-equity ratio of 0.64, which is relatively stable. The return on equity improved to 5.81%, reflecting enhanced profitability and efficient use of equity. The equity ratio stands at 48.94%, showcasing a strong equity base. However, the total debt is still significant, posing potential financial risk if not managed properly.

Cash Flow

Mitchells & Butlers reported a substantial increase in free cash flow, growing by 154.95%, indicating strong cash generation capabilities. The operating cash flow to net income ratio of 2.59 suggests efficient cash conversion. The free cash flow to net income ratio of 1.56 reflects solid cash flow management, although the previous year's lower free cash flow highlighted some volatility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.06B	2.61B	2.50B	2.21B	1.06B	1.48B
Gross Profit	633.00M	996.00M	358.00M	764.00M	60.00M	263.00M
EBITDA	674.00M	438.00M	235.00M	255.00M	218.00M	159.00M
Net Income	249.00M	149.00M	-4.00M	13.00M	-65.00M	-112.00M
Balance Sheet
Total Assets	5.30B	5.25B	4.80B	4.95B	5.21B	5.11B
Cash, Cash Equivalents and Short-Term Investments	253.00M	176.00M	126.00M	207.00M	252.00M	173.00M
Total Debt	1.59B	1.63B	1.79B	1.95B	2.06B	2.32B
Total Liabilities	2.64B	2.68B	2.67B	2.81B	3.10B	3.43B
Stockholders Equity	2.67B	2.57B	2.13B	2.14B	2.10B	1.68B
Cash Flow
Free Cash Flow	391.00M	232.00M	91.00M	116.00M	-8.00M	19.00M
Operating Cash Flow	632.00M	386.00M	248.00M	238.00M	25.00M	127.00M
Investing Cash Flow	-245.00M	-154.00M	-165.00M	-118.00M	-32.00M	-104.00M
Financing Cash Flow	-258.00M	-170.00M	-169.00M	-159.00M	77.00M	1.00M

Mitchells & Butlers Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 262.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:MAB, the sentiment is Negative. The current price of 262.5 is above the 20-day moving average (MA) of 260.90, below the 50-day MA of 269.67, and above the 200-day MA of 252.91, indicating a neutral trend. The MACD of -0.77 indicates Negative momentum. The RSI at 47.83 is Neutral, neither overbought nor oversold. The STOCH value of 68.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:MAB.

Mitchells & Butlers Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MAB	74 Outperform	£1.56B	9.28	6.90%	―	1.95%	275.56%
SSPG	68 Neutral	1.25B	-52.99	12.06%	2.37%	11.49%	-406.25%
MARS	67 Neutral	237.98M	5.38	-2.83%	―	0.50%	0.00%
FSTA	64 Neutral	301.78M	11.71	6.61%	3.55%	4.79%	223.72%
JDW	64 Neutral	738.04M	13.27	0.00%	2.16%	3.70%	57.10%
YNGA	63 Neutral	452.64M	52.41	1.27%	2.79%	24.95%	-16.86%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Mitchells & Butlers Corporate Events

Mitchells & Butlers Directors Acquire Partnership Shares

Mitchells & Butlers plc announced the purchase of partnership shares by the SIP Trustee involving directors Phil Urban, Tim Jones, and PDMR Andrew Freeman. Each transaction involved the acquisition of ordinary shares at a price of £2.624829 per share, conducted on the London Stock Exchange. This move indicates a strategic alignment and confidence in the company’s future performance, potentially impacting shareholder value and market perception positively.

The most recent analyst rating on (GB:MAB) stock is a Buy with a £293.00 price target. To see the full list of analyst forecasts on Mitchells & Butlers stock, see the GB:MAB Stock Forecast page.

Mitchells & Butlers Updates on Share Capital and Voting Rights

Mitchells & Butlers plc announced that as of 29 August 2025, its capital consists of 598,855,657 ordinary shares, with no shares held in treasury. This update on voting rights and capital structure is crucial for shareholders to determine their interests and any changes under the Disclosure Guidance and Transparency Rules.

The most recent analyst rating on (GB:MAB) stock is a Hold with a £291.00 price target. To see the full list of analyst forecasts on Mitchells & Butlers stock, see the GB:MAB Stock Forecast page.

Mitchells & Butlers Directors Invest in Partnership Shares

Mitchells & Butlers plc announced the purchase of partnership shares by the SIP Trustee for directors and persons discharging managerial responsibilities, including Phil Urban, Tim Jones, and Andrew Freeman. These transactions, conducted on the London Stock Exchange, reflect ongoing investments by key company figures, potentially indicating confidence in the company’s future performance and stability.

The most recent analyst rating on (GB:MAB) stock is a Hold with a £3.20 price target. To see the full list of analyst forecasts on Mitchells & Butlers stock, see the GB:MAB Stock Forecast page.

Mitchells & Butlers Updates Shareholders on Voting Rights and Capital Structure

Mitchells & Butlers PLC announced that as of 31 July 2025, their capital structure consists of 598,852,281 ordinary shares, with no shares held in treasury. This update on voting rights is crucial for shareholders to determine their interests and comply with the Disclosure Guidance and Transparency Rules.

The most recent analyst rating on (GB:MAB) stock is a Hold with a £3.20 price target. To see the full list of analyst forecasts on Mitchells & Butlers stock, see the GB:MAB Stock Forecast page.