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Mitchells & Butlers PLC (GB:MAB)
LSE:MAB

Mitchells & Butlers (MAB) AI Stock Analysis

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Mitchells & Butlers

(LSE:MAB)

66Neutral
Mitchells & Butlers exhibits strong financial performance with solid revenue and cash flow growth, although its significant debt remains a concern. Technically, the stock shows a bearish trend but may offer value given its low P/E ratio. Recent corporate events indicate positive shareholder sentiment, supporting the stock's potential for recovery.
Positive Factors
Market Position
M&B is well-placed to gain market share in a cost-pressured sector due to being a market leader with a diverse product portfolio.
Sales Growth
Mitchells & Butlers' 1Q25 update flags ongoing robust trading, with 10% LFL sales growth through the well-timed Christmas period.
Negative Factors
Consumer Behavior
Fears around consumer behaviour post the UK Budget may dampen the shorter-term share price performance.

Mitchells & Butlers (MAB) vs. S&P 500 (SPY)

Mitchells & Butlers Business Overview & Revenue Model

Company DescriptionMitchells & Butlers (MAB) is a leading operator of managed restaurants and pubs in the United Kingdom. The company operates a diverse portfolio of well-known brands, including All Bar One, Harvester, Toby Carvery, and Miller & Carter. With a focus on providing quality food and drink experiences, MAB caters to a wide range of customer preferences, offering dining, entertainment, and social spaces across its extensive network of establishments.
How the Company Makes MoneyMitchells & Butlers generates revenue primarily through the operation of its managed pubs and restaurants. The company earns money by selling food and beverages to customers visiting its diverse range of brands. This includes casual dining experiences, premium dining, and pub-style settings, allowing MAB to tap into various market segments. Key revenue streams include on-site dining sales, bar sales, and special events hosted at their venues. Additionally, MAB benefits from strategic site locations and brand recognition, which drive customer foot traffic and repeat business. While partnerships with suppliers and promotional deals can enhance the customer experience, the core earnings are derived from direct sales to consumers at their establishments.

Mitchells & Butlers Financial Statement Overview

Summary
Mitchells & Butlers has demonstrated commendable financial improvement, with strong revenue growth, enhanced profitability, and robust cash flow generation. The company has improved its equity position, although its significant debt is a point to monitor.
Income Statement
85
Very Positive
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
78
Positive
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
82
Very Positive
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
TTMSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income StatementTotal Revenue
2.62B2.61B2.50B2.21B1.06B1.48B
Gross Profit
359.00M996.00M358.00M764.00M60.00M263.00M
EBIT
290.00M300.00M98.00M239.00M-191.00M-65.00M
EBITDA
383.00M438.00M235.00M255.00M218.00M160.00M
Net Income Common Stockholders
45.00M149.00M-4.00M13.00M-65.00M-112.00M
Balance SheetCash, Cash Equivalents and Short-Term Investments
194.00M176.00M126.00M207.00M252.00M173.00M
Total Assets
4.82B5.25B4.80B4.95B5.21B5.11B
Total Debt
1.73B1.63B1.79B1.95B2.06B2.32B
Net Debt
1.54B1.46B1.67B1.74B1.81B2.15B
Total Liabilities
2.62B2.68B2.67B2.81B3.10B3.43B
Stockholders Equity
2.20B2.57B2.13B2.14B2.10B1.68B
Cash FlowFree Cash Flow
216.00M232.00M91.00M116.00M-8.00M19.00M
Operating Cash Flow
354.00M386.00M248.00M238.00M25.00M127.00M
Investing Cash Flow
-147.00M-154.00M-165.00M-118.00M-32.00M-104.00M
Financing Cash Flow
-170.00M-170.00M-169.00M-159.00M77.00M1.00M

Mitchells & Butlers Technical Analysis

Technical Analysis Sentiment
Negative
Last Price215.50
Price Trends
50DMA
230.16
Negative
100DMA
238.56
Negative
200DMA
267.67
Negative
Market Momentum
MACD
-3.44
Positive
RSI
43.23
Neutral
STOCH
46.87
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 215.5 is below the 20-day moving average (MA) of 223.87, below the 50-day MA of 230.16, and below the 200-day MA of 267.67, indicating a bearish trend. The MACD of -3.44 indicates Positive momentum. The RSI at 43.23 is Neutral, neither overbought nor oversold. The STOCH value of 46.87 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

Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
£289.30M15.154.58%3.55%2.22%98.79%
GBMAB
66
Neutral
£1.30B8.606.35%4.27%
GBJDW
66
Neutral
£688.69M14.5412.18%2.04%5.74%-16.78%
61
Neutral
£460.63M26.771.81%3.90%16.73%-55.22%
59
Neutral
$12.50B10.402.26%3.63%1.65%-18.81%
57
Neutral
£236.31M2.70%3.02%29.25%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:MAB
Mitchells & Butlers
222.50
-13.90
-5.88%
GB:FSTA
Fuller Smith & Turner
540.00
-20.29
-3.62%
GB:MARS
Marston's
37.00
8.35
29.14%
GB:JDW
J D Wetherspoon
580.00
-218.68
-27.38%
GB:YNGN
Young & Co'S Brewery
568.00
-49.55
-8.02%

Mitchells & Butlers Corporate Events

Business Operations and Strategy
Mitchells & Butlers Announces Key Share Purchases by Management
Neutral
Mar 3, 2025

Mitchells & Butlers plc announced the purchase of partnership shares by the SIP Trustee for three key individuals: Phil Urban, Tim Jones, and Andrew Freeman. Each transaction involved the acquisition of 62 ordinary shares at a price of £2.22468 per share, conducted on the London Stock Exchange. This move reflects the company’s ongoing efforts to align the interests of its management with those of its shareholders, potentially impacting its operational strategies and stakeholder relations.

Regulatory Filings and Compliance
Mitchells & Butlers Updates Share Capital and Voting Rights
Neutral
Feb 28, 2025

Mitchells & Butlers plc announced that as of February 28, 2025, the company’s capital consists of 598,534,533 ordinary shares, with no shares held in Treasury. This update is crucial for shareholders as it provides the necessary information for calculating their interests in the company, in compliance with the Disclosure Guidance and Transparency Rules.

Other
Mitchells & Butlers Directors Acquire Partnership Shares
Neutral
Feb 3, 2025

Mitchells & Butlers plc recently announced the purchase of partnership shares by the SIP Trustee, involving directors Phil Urban, Tim Jones, and PDMR Andrew Freeman. The transactions, conducted on the London Stock Exchange, were executed at a price of £2.315 per share, highlighting the company’s continued emphasis on stakeholder engagement through shareholding activities.

Regulatory Filings and Compliance
Mitchells & Butlers Updates Shareholders on Voting Rights
Neutral
Jan 31, 2025

Mitchells & Butlers PLC has announced that, as of January 31, 2025, its capital is comprised of 598,529,072 ordinary shares, with no shares held in treasury. This update is in accordance with Rule 5.6.1 of the Disclosure Guidance and Transparency Rules, informing shareholders of the total number of voting rights, which can be used to assess their shareholding requirements or changes under these rules.

Executive/Board ChangesShareholder Meetings
Mitchells & Butlers Successfully Passes All AGM Resolutions
Positive
Jan 23, 2025

Mitchells & Butlers announced the results of its Annual General Meeting on January 23, 2025, where all proposed resolutions were approved. The meeting featured votes on ordinary and special resolutions, including the re-election of several directors and the reappointment of auditors, reflecting strong shareholder support and compliance with regulatory standards.

Mitchells & Butlers Directors Execute Share Transactions Under Incentive Plan
Jan 16, 2025

Mitchells & Butlers announced that directors Phil Urban and Tim Jones have vested and sold shares under the company’s Short Term Deferred Incentive Plan. The transactions, conducted to cover tax and National Insurance obligations, align with the company’s approved remuneration policy, ensuring compliance with shareholding and post-cessation holding requirements. These transactions reflect the company’s effort to maintain transparency and adherence to its policies, impacting stakeholders by demonstrating a commitment to structured financial governance.

Mitchells & Butlers Reports Strong Festive Sales Performance
Jan 15, 2025

Mitchells & Butlers reported a strong performance during the festive season with a like-for-like sales growth of 10.4% over the core three-week period, despite challenges like adverse weather conditions. The company completed 40 conversions and remodels in the year to date and is optimistic about facing cost headwinds, driven by increased labor costs, to continue profit growth and market outperformance.

Mitchells & Butlers To Release First Quarter Trading Update
Jan 13, 2025

Mitchells & Butlers has announced that it will release its First Quarter Trading Update for the 15 weeks ended 11 January 2025. This upcoming release is significant for stakeholders as it will provide insights into the company’s financial performance and strategic positioning in the highly competitive restaurant and pub industry.

Mitchells & Butlers Directors Increase Stake Through SIP Trustee Share Purchase
Jan 6, 2025

Mitchells & Butlers plc has announced the purchase of partnership shares by the SIP Trustee for three of its directors: Phil Urban, Tim Jones, and Andrew Freeman. The transactions, conducted at a price of £2.425 per share, were executed on the London Stock Exchange and mark the directors’ further investment in the company, potentially signaling confidence in its future growth and stability.

Mitchells & Butlers Announces Share Capital Structure Update
Jan 2, 2025

Mitchells & Butlers PLC announced that as of 2 January 2025, its capital is comprised of 598,522,602 ordinary shares, with no shares held in treasury. This update allows shareholders to calculate their voting rights and determine any necessary notifications regarding changes in their shareholding, in line with the Disclosure Guidance and Transparency Rules.

Mitchells & Butlers Releases 2024 Annual Report and AGM Notice
Dec 19, 2024

Mitchells & Butlers PLC has released its Annual Report and Accounts for 2024, along with the notice for the 2025 Annual General Meeting, which are now available for inspection. The announcement highlights the company’s compliance with UK Listing Rules and provides stakeholders with access to important financial information, reflecting the company’s commitment to transparency and regulatory standards.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.