Mitchells & Butlers: Strong Market Position and Financial Outlook Justify Buy Rating

Analyst James Wheatcroft of Jefferies maintained a Buy rating on Mitchells & Butlers (MAB – Research Report), with a price target of p355.00.

James Wheatcroft has given his Buy rating due to a combination of factors that highlight Mitchells & Butlers’ strong market position and financial outlook. The company has demonstrated robust like-for-like sales in the first half of 2025, outperforming the market, and maintains its profit guidance at the higher end of consensus expectations for the fiscal year 2025. This positive performance is supported by the company’s effective cost mitigation strategies, despite ongoing cost pressures from labor and food expenses.
Furthermore, Mitchells & Butlers is well-positioned to capture market share in a challenging economic environment, benefiting from its scale, market leadership, and diverse product portfolio. The company’s leverage is at a manageable level, with strong cash generation expected to facilitate a significant transfer of value from debt to equity over the next few years. Despite recent share price gains, the company’s valuation remains below pre-COVID levels, presenting an attractive investment opportunity.