Mitchells & Butlers (MAB) AI Stock Analysis

• Market Cap: £1.41B
• Dividend Yield: N/A
• Average Volume (3M): 414.44K
• Price to Earnings (P/E): 9.5
• Beta (1Y): 0.80
• Revenue Growth: 4.27%
• EPS Growth: N/A
• Country: UK
• Employees: 50,000
• Sector: Consumer Cyclical
• Sector Strength: 61
• Industry: Restaurants
• EPS (TTM): 0.25
• Shares Outstanding: 598,548,460
• 10 Day Avg. Volume: 584,771
• 30 Day Avg. Volume: 414,436
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.51
• Price to Cash Flow (P/CF): N/A
• P/FCF Ratio: 0.00
• 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: 355.00p
• Price Target Upside: 47.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

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

Mitchells & Butlers is strategically positioned to gain market share in a cost-pressured sector, benefiting from its leadership status and diverse product portfolio.

Sales Growth

Mitchells & Butlers' update highlights a robust trading period with a 10% like-for-like sales growth during the well-timed Christmas season.

Negative Factors

Consumer Behavior

Concerns about consumer behavior following the UK Budget may negatively impact the short-term share price performance.

Mitchells & Butlers Business Overview & Revenue Model

Company Description

Mitchells & 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 Money

Mitchells & 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

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	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
2.62B	2.61B	2.50B	2.21B	1.06B	1.48B
	Gross Profit
359.00M	996.00M	358.00M	764.00M	60.00M	263.00M
	EBIT
290.00M	300.00M	98.00M	239.00M	-191.00M	-65.00M
	EBITDA
383.00M	438.00M	235.00M	255.00M	218.00M	160.00M
	Net Income Common Stockholders
45.00M	149.00M	-4.00M	13.00M	-65.00M	-112.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
194.00M	176.00M	126.00M	207.00M	252.00M	173.00M
	Total Assets
4.82B	5.25B	4.80B	4.95B	5.21B	5.11B
	Total Debt
1.73B	1.63B	1.79B	1.95B	2.06B	2.32B
	Net Debt
1.54B	1.46B	1.67B	1.74B	1.81B	2.15B
	Total Liabilities
2.62B	2.68B	2.67B	2.81B	3.10B	3.43B
	Stockholders Equity
2.20B	2.57B	2.13B	2.14B	2.10B	1.68B
Cash Flow		Free Cash Flow
216.00M	232.00M	91.00M	116.00M	-8.00M	19.00M
	Operating Cash Flow
354.00M	386.00M	248.00M	238.00M	25.00M	127.00M
	Investing Cash Flow
-147.00M	-154.00M	-165.00M	-118.00M	-32.00M	-104.00M
	Financing Cash Flow
-170.00M	-170.00M	-169.00M	-159.00M	77.00M	1.00M

Mitchells & Butlers Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 241.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 241.5 is above the 20-day moving average (MA) of 221.60, above the 50-day MA of 223.77, and below the 200-day MA of 258.42, indicating a neutral trend. The MACD of 2.87 indicates Negative momentum. The RSI at 68.77 is Neutral, neither overbought nor oversold. The STOCH value of 96.29 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FSTA	67 Neutral	£292.00M	15.38	4.58%	3.50%	2.22%	98.79%
MAB	66 Neutral	£1.41B	9.45	6.35%	―	4.27%	―
JDW	64 Neutral	£665.08M	11.51	16.38%	2.00%	3.70%	57.10%
YNGN	61 Neutral	£440.27M	25.19	1.81%	4.18%	16.73%	-55.22%
Sector *	60 Neutral	$7.23B	11.55	3.67%	4.04%	2.96%	-13.54%
MARS	59 Neutral	£221.41M	―	2.70%	―	3.02%	29.25%

Mitchells & Butlers Corporate Events

Mitchells & Butlers Announces Director Share Purchases

Mitchells & Butlers plc announced transactions involving the purchase of partnership shares by the SIP Trustee for directors Phil Urban, Tim Jones, and PDMR Andrew Freeman. Each transaction involved the purchase of 64 ordinary shares at a price of £2.16 per share on the London Stock Exchange, dated 28 March 2025. This notification highlights the company’s ongoing commitment to its employee share ownership plans, potentially aligning the interests of management with those of shareholders.

Mitchells & Butlers Announces Share Capital Structure Update

Mitchells & Butlers PLC announced that as of March 31, 2025, its capital structure consists of 598,548,476 ordinary shares, with no shares held in treasury. This update is significant for shareholders as it provides the necessary information for calculating their interests in the company under the Disclosure Guidance and Transparency Rules.

Mitchells & Butlers Announces Key Share Purchases by Management

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.

Mitchells & Butlers Updates Share Capital and Voting Rights

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.

Mitchells & Butlers Directors Acquire Partnership Shares

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.

Mitchells & Butlers Updates Shareholders on Voting Rights

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.

Mitchells & Butlers Successfully Passes All AGM Resolutions

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

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

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.