Mitchells & Butlers (MAB) AI Stock Analysis

• Market Cap: £1.56B
• Dividend Yield: N/A
• Average Volume (3M): 350.47K
• Price to Earnings (P/E): 8.8
• Beta (1Y): 0.89
• Revenue Growth: 3.87%
• EPS Growth: 18.31%
• Country: UK
• Employees: 50,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 0.14
• Shares Outstanding: 599,314,700
• 10 Day Avg. Volume: 289,857
• 30 Day Avg. Volume: 350,472
• PEG Ratio: 0.42
• Price to Book (P/B): 0.52
• Price to Sales (P/S): 0.54
• P/FCF Ratio: 7.39
• 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: £343.00
• Price Target Upside: 30.92% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: 276.00p ▲(5.34% Upside)

Mitchells & Butlers' overall stock score of 66 reflects a mixed financial performance with operational efficiency and a strong equity base, but challenges in revenue growth and cash flow. The technical analysis indicates a neutral market position, while the valuation suggests potential undervaluation. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Operational Efficiency

Despite revenue challenges, MAB's ability to maintain a positive net profit margin and improve operational margins indicates strong cost management and efficiency, which are crucial for long-term profitability.

Strong Equity Base

A strong equity base provides financial stability and flexibility, allowing MAB to invest in growth opportunities and weather economic downturns, supporting long-term business sustainability.

Cash Generation Ability

A strong operating cash flow relative to net income indicates robust cash generation, which is essential for funding operations, paying down debt, and investing in future growth.

Negative Factors

Revenue Decline

A substantial decline in revenue poses a risk to MAB's market position and growth prospects, potentially impacting its ability to compete and invest in business expansion.

Cash Flow Challenges

Declining free cash flow growth limits MAB's ability to reinvest in the business, reduce debt, and return capital to shareholders, potentially affecting long-term financial health.

Inconsistent Revenue Growth

Inconsistent revenue growth can hinder strategic planning and investment, making it challenging for MAB to sustain competitive advantages and adapt to market changes.

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 food and beverage sales within its establishments. The company’s revenue model is driven by multiple key streams, including sales from its restaurants and pubs, which serve a variety of alcoholic and non-alcoholic beverages, as well as a menu of prepared meals. Additionally, MAB benefits from strategic partnerships with suppliers and brands that help enhance its product offerings and promotional campaigns. Seasonal promotions, special events, and loyalty programs also contribute to increased customer traffic and sales. MAB's ability to adapt its menu and services to changing consumer preferences, along with effective marketing strategies, plays a significant role in sustaining its revenue growth.

Mitchells & Butlers Financial Statement Overview

Summary

Mitchells & Butlers shows a mixed financial performance. Despite a significant revenue decline of 33.29%, the company maintains a positive net profit margin of 6.53% and improved EBIT and EBITDA margins. The balance sheet is stable with moderate leverage and a strong equity base. However, challenges exist in cash flow generation, with a 49.11% decline in free cash flow growth.

Income Statement

Mitchells & Butlers has shown a mixed performance in its income statement. The company experienced a significant revenue decline of 33.29% in the latest year, which is concerning. However, it has maintained a positive net profit margin of 6.53% and improved its EBIT and EBITDA margins, indicating operational efficiency. The revenue growth has been inconsistent over the years, with some periods of growth followed by declines.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.54, indicating moderate leverage. The equity ratio stands at 52.22%, suggesting a strong equity base relative to total assets. Return on equity has improved to 6.28%, showing better profitability for shareholders. However, the company should monitor its debt levels to maintain financial stability.

Cash Flow

Cash flow analysis reveals challenges, with a significant decline in free cash flow growth of 49.11%. The operating cash flow to net income ratio is healthy at 2.08, indicating strong cash generation relative to net income. However, the free cash flow to net income ratio is lower at 1.12, suggesting limited cash available after capital expenditures.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.71B	2.71B	2.61B	2.50B	2.21B	1.06B
Gross Profit	398.00M	327.00M	996.00M	358.00M	764.00M	60.00M
EBITDA	449.00M	473.00M	438.00M	235.00M	255.00M	218.00M
Net Income	177.00M	177.00M	149.00M	-4.00M	13.00M	-65.00M
Balance Sheet
Total Assets	5.39B	5.39B	5.25B	4.80B	4.95B	5.21B
Cash, Cash Equivalents and Short-Term Investments	216.00M	216.00M	176.00M	126.00M	207.00M	252.00M
Total Debt	1.51B	1.51B	1.63B	1.79B	1.95B	2.06B
Total Liabilities	2.58B	2.58B	2.68B	2.67B	2.81B	3.10B
Stockholders Equity	2.82B	2.82B	2.57B	2.13B	2.14B	2.10B
Cash Flow
Free Cash Flow	199.00M	199.00M	232.00M	91.00M	116.00M	-8.00M
Operating Cash Flow	368.00M	368.00M	386.00M	248.00M	238.00M	25.00M
Investing Cash Flow	-179.00M	-179.00M	-154.00M	-165.00M	-118.00M	-32.00M
Financing Cash Flow	-173.00M	-173.00M	-170.00M	-169.00M	-159.00M	77.00M

Mitchells & Butlers Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 262.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Positive. The current price of 262 is below the 20-day moving average (MA) of 263.90, above the 50-day MA of 252.71, and above the 200-day MA of 258.91, indicating a neutral trend. The MACD of 2.66 indicates Positive momentum. The RSI at 53.72 is Neutral, neither overbought nor oversold. The STOCH value of 78.87 is Neutral, 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	79 Outperform	£386.62M	19.00	4.82%	2.81%	6.94%	9.99%
MARS	71 Outperform	£373.18M	5.20	9.91%	―	-0.08%	―
JDW	69 Neutral	£766.44M	12.12	17.81%	1.50%	4.52%	50.39%
YNGA	67 Neutral	£425.07M	40.12	1.46%	3.20%	12.91%	-13.62%
MAB	66 Neutral	£1.56B	8.77	6.58%	―	3.87%	18.31%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
SSPG	48 Neutral	£1.63B	-21.96	-48.11%	2.50%	5.98%	-371.14%

Mitchells & Butlers Corporate Events

Mitchells & Butlers Announces CFO Transition

Mitchells & Butlers PLC announced a significant leadership change with the retirement of Tim Jones, the long-serving Chief Financial Officer, after fifteen years of service. Emma Harris, currently Finance Director at Marks and Spencer Group, has been appointed as his successor. This transition is part of the company’s succession planning efforts and is expected to take place by early Summer 2026. The announcement highlights the company’s strong financial position and its strategic focus on maintaining its competitive edge in the hospitality sector.

The most recent analyst rating on (GB:MAB) stock is a Hold with a £3.00 price target. To see the full list of analyst forecasts on Mitchells & Butlers stock, see the GB:MAB Stock Forecast page.

Mitchells & Butlers Directors Acquire Partnership Shares

Mitchells & Butlers plc announced the purchase of partnership shares by the SIP Trustee for directors Phil Urban, Tim Jones, and PDMR Andrew Freeman, with transactions conducted on the London Stock Exchange. Each transaction involved the acquisition of shares at a price of £2.53149 per share, reflecting the company’s ongoing commitment to aligning management interests with shareholder value.

The most recent analyst rating on (GB:MAB) stock is a Hold with a £3.00 price target. To see the full list of analyst forecasts on Mitchells & Butlers stock, see the GB:MAB Stock Forecast page.

Mitchells & Butlers Reports Strong Sales Growth Amid Expansion Efforts

Mitchells & Butlers reported a strong trading performance for the 51 weeks ending 20 September 2025, with total sales increasing by 3.9%. The company has focused on expanding its capital program, completing 201 conversions and remodels, and opening new sites. Despite anticipating higher cost inflation, Mitchells & Butlers remains confident in its ability to outperform the sector, supported by its Ignite program for cost efficiencies.

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 to Release Pre-Close Trading Statement

Mitchells & Butlers announced it will release its pre-close trading statement for the 51 weeks ended 20 September on 25 September 2025. This announcement is significant as it provides stakeholders with insights into the company’s financial performance and operational progress, potentially impacting its market positioning and investor relations.

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 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.