Mitchells & Butlers (MAB) AI Stock Analysis

• Market Cap: £1.70B
• Dividend Yield: N/A
• Average Volume (3M): 271.79K
• Price to Earnings (P/E): 10.1
• Beta (1Y): 0.88
• Revenue Growth: 1.95%
• EPS Growth: 275.56%
• Country: UK
• Employees: 50,000
• Sector: Consumer Cyclical
• Sector Strength: 63
• Industry: Restaurants
• EPS (TTM): 0.17
• Shares Outstanding: 598,552,800
• 10 Day Avg. Volume: 318,015
• 30 Day Avg. Volume: 271,791
• PEG Ratio: 0.05
• Price to Book (P/B): 0.61
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.72
• 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: £342.50
• Price Target Upside: 19.55% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 80 Outperform
• Price Target: 317.00p ▲(10.65%Upside)

Mitchells & Butlers demonstrates strong financial performance with significant improvements in revenue, profitability, and cash flow. The stock's bullish technical indicators support a positive outlook, although overbought signals suggest caution. The reasonable valuation and positive corporate events further enhance the stock's appeal.

Positive Factors

Earnings

M&B expects to hit profits at the 'top end of consensus' for FY25E.

Market Position

M&B looks well-placed to gain market share in a cost-pressured sector.

Negative Factors

Consumer Behavior

Fears around consumer behaviour post the UK Budget may dampen the shorter-term share price performance.

Cost Challenges

M&B flags ongoing cost headwinds into FY26E (labour, food).

Mitchells & Butlers Business Overview & Revenue Model

Company Description

Mitchells & Butlers (MAB) is a leading operator of managed restaurants, pubs, and bars in the United Kingdom. The company operates a diverse portfolio of brands, including All Bar One, Harvester, Toby Carvery, and Browns, among others. MAB focuses on providing high-quality food and drink experiences across its establishments, catering to a wide range of customer preferences and occasions.

How the Company Makes Money

Mitchells & Butlers makes money primarily through the operation of its extensive network of restaurants, pubs, and bars. The company's revenue model relies on sales of food and beverages, with a significant portion coming from its food offerings complemented by drink sales. Key revenue streams include in-house dining, event hosting, and special promotions. The company benefits from its strategic locations and well-known brand portfolio, which attract a steady flow of customers. Additionally, MAB may engage in partnerships with suppliers and beverage companies to optimize costs and increase profitability. Seasonal promotions and menu innovations also contribute to its revenue growth, while operational efficiency and cost management remain crucial to maintaining its earnings.

Mitchells & Butlers Financial Statement Overview

Summary

Mitchells & Butlers has shown commendable financial improvement, with solid revenue growth, enhanced profitability, and strong cash flow generation. The financial health appears resilient, with positive trends in key financial metrics. However, the presence of significant debt remains 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
Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
2.61B	2.50B	2.21B	1.06B	1.48B
	Gross Profit
996.00M	358.00M	764.00M	60.00M	263.00M
	EBIT
300.00M	98.00M	239.00M	-191.00M	-65.00M
	EBITDA
438.00M	235.00M	255.00M	218.00M	160.00M
	Net Income Common Stockholders
149.00M	-4.00M	13.00M	-65.00M	-112.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
176.00M	126.00M	207.00M	252.00M	173.00M
	Total Assets
5.25B	4.80B	4.95B	5.21B	5.11B
	Total Debt
1.63B	1.79B	1.95B	2.06B	2.32B
	Net Debt
1.46B	1.67B	1.74B	1.81B	2.15B
	Total Liabilities
2.68B	2.67B	2.81B	3.10B	3.43B
	Stockholders Equity
2.57B	2.13B	2.14B	2.10B	1.68B
Cash Flow		Free Cash Flow
232.00M	91.00M	116.00M	-8.00M	19.00M
	Operating Cash Flow
386.00M	248.00M	238.00M	25.00M	127.00M
	Investing Cash Flow
-154.00M	-165.00M	-118.00M	-32.00M	-104.00M
	Financing Cash Flow
-170.00M	-169.00M	-159.00M	77.00M	1.00M

Mitchells & Butlers Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 286.50
• 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 286.5 is above the 20-day moving average (MA) of 279.27, above the 50-day MA of 252.45, and above the 200-day MA of 252.41, indicating a bullish trend. The MACD of 9.33 indicates Positive momentum. The RSI at 69.66 is Neutral, neither overbought nor oversold. The STOCH value of 44.03 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
MAB	80 Outperform	£1.70B	10.13	6.90%	―	1.95%	275.56%
FSTA	74 Outperform	£345.29M	18.29	4.58%	2.94%	2.22%	98.79%
JDW	73 Outperform	£794.53M	14.02	16.38%	2.19%	3.70%	57.10%
YNGA	72 Outperform	£520.12M	61.41	1.27%	2.26%	16.73%	-55.22%
SSPG	71 Outperform	£1.31B	47.61	12.09%	2.14%	14.07%	236.27%
MARS	67 Neutral	£262.54M	5.92	10.69%	―	0.50%	―
Sector *	62 Neutral	$6.88B	11.32	2.95%	3.87%	2.70%	-24.57%

Mitchells & Butlers Corporate Events

Mitchells & Butlers Updates Share Capital and Voting Rights

Mitchells & Butlers PLC announced that as of May 30, 2025, its capital structure consists of 598,552,780 ordinary shares, with no shares held in treasury. This update on voting rights is crucial for shareholders to assess their stakes and comply with the Disclosure Guidance and Transparency Rules, impacting how they report changes in their shareholdings.

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 Directors Acquire Partnership Shares

Mitchells & Butlers plc announced the purchase of partnership shares by the SIP Trustee for three of its directors and PDMR, including Phil Urban, Tim Jones, and Andrew Freeman. The transactions, conducted on the London Stock Exchange, involved the acquisition of ordinary shares at £2.815 per share, reflecting the company’s ongoing commitment to aligning management interests with shareholders.

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 Reports Strong H1 2025 Performance Amid Market Challenges

Mitchells & Butlers reported strong financial performance for the first half of 2025, with a 4.3% increase in like-for-like sales and a 10.4% rise in operating profit to £181 million. The company attributes its success to the strategic focus on maximizing guest appeal and efficiency initiatives under its Ignite programme. Despite anticipated cost headwinds due to rising labor costs and inflation, the company remains confident in its strategic priorities and expects to deliver profits at the top end of market consensus. The company continues to outperform the market, particularly in the pubs and pub restaurants segment, while maintaining a strong balance sheet with reduced debt.

The most recent analyst rating on (GB:MAB) stock is a Hold with a £290.00 price target. To see the full list of analyst forecasts on Mitchells & Butlers stock, see the GB:MAB Stock Forecast page.

Mitchells & Butlers to Announce Half Year Results

Mitchells & Butlers announced that it will release its Half Year Results for the 28 weeks ended 12 April 2025 on 22 May 2025. This announcement is significant for stakeholders as it provides insights into the company’s financial performance and strategic positioning in the competitive hospitality market.

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 Announces Share Capital and Voting Rights Update

Mitchells & Butlers plc announced that as of 30 April 2025, its capital consisted of 598,552,598 ordinary shares with no shares held in Treasury. The total number of voting rights is also 598,552,598, which shareholders can use as a denominator for calculating their interests under the Disclosure Guidance and Transparency Rules.

Mitchells & Butlers Directors Acquire Partnership Shares

Mitchells & Butlers plc announced the purchase of partnership shares by the SIP Trustee for three of its directors and PDMR, including Phil Urban, Tim Jones, and Andrew Freeman. Each transaction involved the acquisition of shares at a price of £2.384914 per share, conducted on the London Stock Exchange on April 25, 2025. This move reflects the company’s ongoing commitment to aligning the interests of its management with those of its shareholders, potentially enhancing stakeholder confidence.

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.