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Mitchells & Butlers
(LSE:MAB)
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Rating:69Neutral
Price Target:
343.00 p
▲(21.85% Upside)
Action:Reiterated
Date:08/21/26
The score is led by a mixed financial base (sharp revenue and free-cash-flow declines) balanced by moderate leverage and improved profitability, supported by positive technical momentum (price above key moving averages with positive MACD). Valuation is a tailwind (P/E 9), while the earnings call was broadly constructive on cash flow, de-gearing and guidance but highlighted ongoing cost/energy and tax headwinds.
Positive Factors
Like-for-like sales growth
Positive like-for-like sales indicate continued customer demand across the managed pub, bar and restaurant estate. Although quarterly growth moderated, sustained underlying sales momentum supports revenue resilience and gives management scope to leverage the existing venue base.
Negative Factors
Revenue volatility
The sharp latest-year revenue decline and uneven historical growth indicate that sales performance is not consistently expanding. This weakens operating leverage and makes sustained profit growth more dependent on pricing, mix and cost control.
Read all positive and negative factors
Positive Factors
Negative Factors
Like-for-like sales growth
Positive like-for-like sales indicate continued customer demand across the managed pub, bar and restaurant estate. Although quarterly growth moderated, sustained underlying sales momentum supports revenue resilience and gives management scope to leverage the existing venue base.
Read all positive factors
Mitchells & Butlers (MAB) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£1.86B
Dividend Yield2.89%
Average Volume (3M)361.37K
Price to Earnings (P/E)10.1
Beta (1Y)0.95
Revenue Growth2.96%
EPS Growth9.30%
CountryUK
Employees50,000
SectorConsumer Cyclical
Sector Strength84
IndustryRestaurants
Share Statistics
EPS (TTM)0.31
Shares Outstanding600,025,500
10 Day Avg. Volume470,823
30 Day Avg. Volume361,374
Financial Highlights & Ratios
PEG Ratio0.41
Price to Book (P/B)0.52
Price to Sales (P/S)0.54
P/FCF Ratio7.39
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.34
Revenue Forecast (FY)£2.87B
Mitchells & Butlers Business Overview & Revenue Model
Company Description
Mitchells & Butlers plc is a prominent hospitality company overseeing a large portfolio of pubs, bars, and restaurants across the United Kingdom and Germany. Its extensive roster of brands includes well-known names such as Alex, All Bar One, Brown...
How the Company Makes Money
M&B makes money by operating its venues on a managed (directly operated) model, generating revenue from on-site customer spending. Its core revenue streams are (1) food sales (meals and related menu items) and (2) drink sales (alcoholic beverages ...
Mitchells & Butlers Earnings Call Summary
Earnings Call Date:May 21, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 26, 2026
Earnings Call Sentiment Positive
The call balanced near‑term challenges (notably weather disruption, input cost inflation, energy exposure and higher near‑term cash tax) against a number of meaningful positives: maintained operating profit, EPS growth, strong cash generation and de‑gearing, a transformed pension position, high‑return capital investment, healthy guest and staff metrics and clear execution on Ignite. Management expects cost headwinds to moderate next year (guidance c. GBP 95 million) and retains an optimistic outlook supported by a stronger balance sheet and ongoing efficiency programs.Positive Updates
Maintained Operating Profit and EPS Growth
Operating profit remained at GBP 181 million (flat year‑on‑year) and EPS increased by 3.6%, helped by reduced debt and lower interest charges.
Negative Updates
Weather‑Driven Q2 Slowdown
Q2 performance was materially impacted by adverse year‑on‑year weather (69% of days colder than last year, 91% with fewer sunshine hours), contributing to Q2 like‑for‑like growth slowing to +1.8%.
Read all updates
Q2-2026 Updates
Positive
Negative
Maintained Operating Profit and EPS Growth
Operating profit remained at GBP 181 million (flat year‑on‑year) and EPS increased by 3.6%, helped by reduced debt and lower interest charges.
Read all positive updates
Company Guidance
Management reiterated that trading and cost guidance point to a solid outlook: H1 like‑for‑like sales were 3.3% (Q1 +4.5%, Q2 +1.8%), operating profit was GBP181m and EPS rose 3.6%, with net debt now just under GBP750m (~1.6x EBITDA ex‑leases) and net assets GBP4.91/share; cash flow was strong (GBP30m in excess of amortisation in H1) and the pension position has flipped to a ~GBP100m asset. Full‑year CapEx is guided to ~GBP230m (H1 GBP117m) with remodel paybacks within 5 years and returns ~33%; management expects to spend materially more on single‑site acquisitions (c. GBP25–30m increase vs last year’s ~GBP9m of new‑site spend) while maintenance capex was ~GBP65m last year and is expected to be a little higher this year. Reported cost headwinds for the year were slightly below prior GBP120–130m guidance (weighted ~60% to H1), incremental employer NI of c. GBP12m has been annualised out of next‑year headwinds, and FY27 cost inflation is guided to around GBP95m (~4% of the cost base) with c.15% of next‑year energy hedged and a small utilities uplift c. GBP10m; wage assumptions imply a measured living‑wage rise of ~4–5%. Finally, strategic metrics cited include a 7‑year remodel cycle, a 15m‑strong guest database, Ignite efficiencies already contributing (H1 efficiency figure referenced c. GBP12m), and sustainability progress (total carbon −16% vs 2019, Scope 1&2 −22%, Scope 3 −15%, 100% waste diverted from landfill, recycling >60%, food waste −23%).Mitchells & Butlers Financial Statement Overview
Summary
Income Statement
65
Positive
Balance Sheet
70
Positive
Cash Flow
60
Neutral
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.75B | 2.71B | 2.61B | 2.50B | 2.21B | 1.06B |
| Gross Profit | 327.00M | 327.00M | 996.00M | 358.00M | 764.00M | 60.00M |
| EBITDA | 469.00M | 473.00M | 438.00M | 235.00M | 255.00M | 218.00M |
| Net Income | 184.00M | 177.00M | 149.00M | -4.00M | 13.00M | -65.00M |
Balance Sheet | ||||||
| Total Assets | 5.44B | 5.39B | 5.25B | 4.80B | 4.95B | 5.21B |
| Cash, Cash Equivalents and Short-Term Investments | 240.00M | 216.00M | 176.00M | 126.00M | 207.00M | 252.00M |
| Total Debt | 1.41B | 1.51B | 1.63B | 1.79B | 1.95B | 2.06B |
| Total Liabilities | 2.51B | 2.58B | 2.68B | 2.67B | 2.81B | 3.10B |
| Stockholders Equity | 2.93B | 2.82B | 2.57B | 2.13B | 2.14B | 2.10B |
Cash Flow | ||||||
| Free Cash Flow | 179.00M | 199.00M | 232.00M | 91.00M | 116.00M | -8.00M |
| Operating Cash Flow | 374.00M | 368.00M | 386.00M | 248.00M | 238.00M | 25.00M |
| Investing Cash Flow | -214.00M | -179.00M | -154.00M | -165.00M | -118.00M | -32.00M |
| Financing Cash Flow | -181.00M | -173.00M | -170.00M | -169.00M | -159.00M | 77.00M |
Mitchells & Butlers Technical Analysis
Positive
281.50
Price Trends
285.91
Positive
273.76
Positive
269.60
Positive
Market Momentum
9.13
Negative
72.00
Negative
80.79
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:MAB, the sentiment is Positive. The current price of 281.5 is below the 20-day moving average (MA) of 299.75, below the 50-day MA of 285.91, and above the 200-day MA of 269.60, indicating a bullish trend. The MACD of 9.13 indicates Negative momentum. The RSI at 72.00 is Negative, neither overbought nor oversold. The STOCH value of 80.79 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:MAB.
Mitchells & Butlers Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | £1.86B | 10.11 | 6.41% | 2.89% | 2.96% | 9.30% | |
67 Neutral | £620.69M | 26.53 | 3.55% | 2.05% | 4.61% | 186.38% | |
64 Neutral | £362.99M | 4.97 | 9.30% | 6.05% | -0.52% | 68.53% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | £1.01B | 18.11 | 17.99% | 1.16% | 5.19% | -3.45% | |
59 Neutral | £413.70M | 20.14 | 5.14% | 2.67% | 5.71% | -19.77% | |
58 Neutral | £1.36B | -49.86 | -65.76% | 2.42% | 4.58% | -24.15% |
* Consumer Cyclical Sector Average
GB:MAB
Mitchells & Butlers
313.50
63.50
25.40%
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GB:YNGA
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Mitchells & Butlers Corporate Events
Business Operations and StrategyRegulatory Filings and Compliance
Mitchells & Butlers Seeks Block Admission for Sharesave Plan Shares
Positive
Oct 22, 2026
Mitchells Butlers plc, a leading U.K. pub, bar and restaurant operator, runs a portfolio of branded venues positioned in the mainstream eating and drinking out market. Its shares are listed on the Main Market of the London Stock Exchange, and the...
Executive/Board ChangesRegulatory Filings and Compliance
Mitchells & Butlers Executives Add Shares Through Incentive Plan
Positive
Oct 12, 2026
Mitchells Butlers has disclosed share purchases by chief executive Phil Urban and senior manager Andrew Freeman under the company’s Share Incentive Plan. Each acquired 48 ordinary shares at £2.87439 per share via the plan’s SIP T...
Delistings and Listing ChangesRegulatory Filings and Compliance
Mitchells & Butlers Adds New Shares to London Listing
Neutral
Sep 30, 2026
Mitchells Butlers PLC has admitted an additional 6,947 ordinary shares to trading on the Main Market of the London Stock Exchange, bringing its total issued share capital to 600,025,511 shares. The newly admitted shares are fully fungible with ex...
Regulatory Filings and Compliance
Mitchells & Butlers Confirms Current Voting Rights and Share Capital
Neutral
Sep 30, 2026
Mitchells Butlers plc has confirmed that, as of 30 September 2026, its issued share capital comprises 600,025,511 ordinary shares, all of which carry voting rights and none of which are held in treasury.This disclosure clarifies the total number ...
Business Operations and StrategyFinancial Disclosures
Mitchells & Butlers lifts sales and expands estate as cost pressures ease
Positive
Sep 24, 2026
Mitchells Butlers reported like-for-like sales growth of 2.1% for the 51 weeks to 19 September 2026, with total sales up 1.2% despite a challenging external environment. Fourth-quarter like-for-like sales rose 1.4%, supported by a strong August B...
Business Operations and StrategyFinancial Disclosures
Mitchells & Butlers Sets Date for Pre‑Close Trading Update
Neutral
Sep 18, 2026
Mitchells Butlers has announced that it will publish a pre-close trading statement for the 51 weeks ended 19 September on 24 September 2026. The update is expected to provide investors and analysts with an overview of recent trading performance a...
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and Compliance
Mitchells & Butlers Executives Add Shares Through Incentive Plan
Positive
Sep 14, 2026
Mitchells Butlers plc has disclosed small share purchases in its employee Share Incentive Plan involving members of senior management. Chief executive Phil Urban acquired 51 ordinary shares at £2.735 each, while PDMR Andrew Freeman acquired ...
Regulatory Filings and Compliance
Mitchells & Butlers Confirms Share Capital and Voting Rights Total
Neutral
Aug 28, 2026
Mitchells Butlers plc has confirmed that, as of 28 August 2026, its issued share capital comprises 600,021,647 ordinary shares, with no shares held in treasury. This leaves the company with an equal total of 600,021,647 voting rights, a key refer...
Business Operations and StrategyRegulatory Filings and Compliance
Mitchells & Butlers Directors Add Shares via Incentive Plan
Positive
Aug 17, 2026
Mitchells Butlers has reported share purchases under its Share Incentive Plan involving chief executive Phil Urban and senior manager Andrew Freeman. Ordinary shares were bought on their behalf by the plan’s trustee at a price of about ...
Delistings and Listing Changes
Mitchells & Butlers Admits Additional Shares to London Trading
Neutral
Aug 7, 2026
Mitchells Butlers PLC has announced the admission to trading of 352,690 additional ordinary shares on the Main Market of the London Stock Exchange, taking the total number of shares in issue and admitted to trading to 600,018,564. The newly admit...
Business Operations and StrategyRegulatory Filings and Compliance
Mitchells & Butlers Confirms Share Capital and Voting Rights
Positive
Jul 31, 2026
Mitchells Butlers plc has confirmed that, as of 31 July 2026, its issued share capital comprises 600,018,491 ordinary shares, with no shares held in treasury. This establishes the total number of voting rights at the same figure, providing a clea...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.