Mitchells & Butlers PLC (GB:MAB)
LSE:MAB
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Mitchells & Butlers
(LSE:MAB)
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Rating:65Neutral
Price Target:
271.00 p
▼(-2.87% Downside)
Action:Reiterated
Date:05/21/26
Overall score reflects mixed financial performance (margin improvements and a stable balance sheet, but sharp revenue decline and weaker free-cash-flow trends) and bearish technicals (below key moving averages with negative MACD). These are partly offset by attractive low P/E valuation and a generally positive earnings call emphasizing de-gearing, strong cash performance, and improved pension position, despite ongoing cost and energy-risk headwinds.
Positive Factors
Strong cash generation and de-gearing
Strong H1 cash generation and a reduction in net debt to ~£750m (c.1.6x EBITDA ex‑leases), plus £30m cash above amortisation, materially improves liquidity and lowers interest burden. This durable cash strength supports ongoing remodels, selective acquisitions and balance sheet resilience over coming quarters.
Negative Factors
Sharp recent revenue decline
A 33.29% fall in reported revenue is a structurally important weakness: persistent top‑line deterioration reduces operating leverage and limits the ability of margin improvements to offset lower volumes. If sustained, weak sales will pressure returns, cash flow and strategic options.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation and de-gearing
Strong H1 cash generation and a reduction in net debt to ~£750m (c.1.6x EBITDA ex‑leases), plus £30m cash above amortisation, materially improves liquidity and lowers interest burden. This durable cash strength supports ongoing remodels, selective acquisitions and balance sheet resilience over coming quarters.
Read all positive factors
Mitchells & Butlers (MAB) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£1.39B
Dividend YieldN/A
Average Volume (3M)350.47K
Price to Earnings (P/E)7.6
Beta (1Y)1.06
Revenue Growth2.96%
EPS Growth9.30%
CountryUK
Employees50,000
SectorConsumer Cyclical
Sector Strength84
IndustryRestaurants
Share Statistics
EPS (TTM)0.31
Shares Outstanding599,662,300
10 Day Avg. Volume289,857
30 Day Avg. Volume350,472
Financial Highlights & Ratios
PEG Ratio0.42
Price to Book (P/B)0.52
Price to Sales (P/S)0.54
P/FCF Ratio7.39
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£337.50Price Target Upside20.97% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.31
Revenue Forecast (FY)£2.80B
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, Ni...
How the Company Makes Money
M&B primarily makes money by operating its venues on a managed (company-run) basis and generating sales directly from customers. The core revenue streams are (1) food sales (meals and related dining items) and (2) drink sales, including alcoholic ...
Mitchells & Butlers Earnings Call Summary
Earnings Call Date:May 21, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 26, 2026
Earnings Call Sentiment Positive
The call balanced near‑term challenges (notably weather disruption, input cost inflation, energy exposure and higher near‑term cash tax) against a number of meaningful positives: maintained operating profit, EPS growth, strong cash generation and de‑gearing, a transformed pension position, high‑return capital investment, healthy guest and staff metrics and clear execution on Ignite. Management expects cost headwinds to moderate next year (guidance c. GBP 95 million) and retains an optimistic outlook supported by a stronger balance sheet and ongoing efficiency programs.Positive Updates
Maintained Operating Profit and EPS Growth
Operating profit remained at GBP 181 million (flat year‑on‑year) and EPS increased by 3.6%, helped by reduced debt and lower interest charges.
Negative Updates
Weather‑Driven Q2 Slowdown
Q2 performance was materially impacted by adverse year‑on‑year weather (69% of days colder than last year, 91% with fewer sunshine hours), contributing to Q2 like‑for‑like growth slowing to +1.8%.
Read all updates
Q2-2026 Updates
Positive
Negative
Maintained Operating Profit and EPS Growth
Operating profit remained at GBP 181 million (flat year‑on‑year) and EPS increased by 3.6%, helped by reduced debt and lower interest charges.
Read all positive updates
Company Guidance
Management reiterated that trading and cost guidance point to a solid outlook: H1 like‑for‑like sales were 3.3% (Q1 +4.5%, Q2 +1.8%), operating profit was GBP181m and EPS rose 3.6%, with net debt now just under GBP750m (~1.6x EBITDA ex‑leases) and net assets GBP4.91/share; cash flow was strong (GBP30m in excess of amortisation in H1) and the pension position has flipped to a ~GBP100m asset. Full‑year CapEx is guided to ~GBP230m (H1 GBP117m) with remodel paybacks within 5 years and returns ~33%; management expects to spend materially more on single‑site acquisitions (c. GBP25–30m increase vs last year’s ~GBP9m of new‑site spend) while maintenance capex was ~GBP65m last year and is expected to be a little higher this year. Reported cost headwinds for the year were slightly below prior GBP120–130m guidance (weighted ~60% to H1), incremental employer NI of c. GBP12m has been annualised out of next‑year headwinds, and FY27 cost inflation is guided to around GBP95m (~4% of the cost base) with c.15% of next‑year energy hedged and a small utilities uplift c. GBP10m; wage assumptions imply a measured living‑wage rise of ~4–5%. Finally, strategic metrics cited include a 7‑year remodel cycle, a 15m‑strong guest database, Ignite efficiencies already contributing (H1 efficiency figure referenced c. GBP12m), and sustainability progress (total carbon −16% vs 2019, Scope 1&2 −22%, Scope 3 −15%, 100% waste diverted from landfill, recycling >60%, food waste −23%).Mitchells & Butlers Financial Statement Overview
Summary
Income Statement
65
Positive
Balance Sheet
70
Positive
Cash Flow
60
Neutral
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.75B | 2.71B | 2.61B | 2.50B | 2.21B | 1.06B |
| Gross Profit | 327.00M | 327.00M | 996.00M | 358.00M | 764.00M | 60.00M |
| EBITDA | 394.00M | 473.00M | 438.00M | 235.00M | 255.00M | 218.00M |
| Net Income | 184.00M | 177.00M | 149.00M | -4.00M | 13.00M | -65.00M |
Balance Sheet | ||||||
| Total Assets | 5.44B | 5.39B | 5.25B | 4.80B | 4.95B | 5.21B |
| Cash, Cash Equivalents and Short-Term Investments | 240.00M | 216.00M | 176.00M | 126.00M | 207.00M | 252.00M |
| Total Debt | 1.41B | 1.51B | 1.63B | 1.79B | 1.95B | 2.06B |
| Total Liabilities | 2.51B | 2.58B | 2.68B | 2.67B | 2.81B | 3.10B |
| Stockholders Equity | 2.93B | 2.82B | 2.57B | 2.13B | 2.14B | 2.10B |
Cash Flow | ||||||
| Free Cash Flow | 179.00M | 199.00M | 232.00M | 91.00M | 116.00M | -8.00M |
| Operating Cash Flow | 374.00M | 368.00M | 386.00M | 248.00M | 238.00M | 25.00M |
| Investing Cash Flow | -214.00M | -179.00M | -154.00M | -165.00M | -118.00M | -32.00M |
| Financing Cash Flow | -181.00M | -173.00M | -170.00M | -169.00M | -159.00M | 77.00M |
Mitchells & Butlers Technical Analysis
Negative
279.00
Price Trends
256.62
Negative
267.96
Negative
261.70
Negative
Market Momentum
-7.14
Positive
35.98
Neutral
25.43
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 279 is above the 20-day moving average (MA) of 247.40, above the 50-day MA of 256.62, and above the 200-day MA of 261.70, indicating a bearish trend. The MACD of -7.14 indicates Positive momentum. The RSI at 35.98 is Neutral, neither overbought nor oversold. The STOCH value of 25.43 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | £348.87M | 17.87 | 4.99% | 2.81% | 6.94% | 9.13% | |
66 Neutral | £302.82M | 4.07 | 9.30% | ― | -0.52% | 68.53% | |
65 Neutral | £1.39B | 7.62 | 6.41% | ― | 2.96% | 9.30% | |
63 Neutral | £451.74M | 17.37 | 3.55% | 3.20% | 4.61% | 186.76% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
55 Neutral | £627.39M | 11.98 | 15.81% | 1.50% | 5.39% | -3.64% | |
50 Neutral | £1.30B | -45.75 | -65.76% | 2.50% | 4.58% | -24.15% |
* Consumer Cyclical Sector Average
GB:MAB
Mitchells & Butlers
235.00
-50.50
-17.69%
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Mitchells & Butlers Corporate Events
Business Operations and StrategyFinancial Disclosures
Mitchells & Butlers Holds Profits as Sales Rise and Costs Bite
Positive
May 21, 2026
Mitchells Butlers reported half‑year revenue of £1.49bn for the 28 weeks to 11 April 2026, up 2.5% year on year, with like‑for‑like sales rising 3.3% across its estate of pubs, restaurants and bars. Adjusted operating profi...
Financial Disclosures
Mitchells & Butlers Sets Date for Half-Year Results Amid Sector Scrutiny
Neutral
May 14, 2026
Mitchells Butlers has announced that it will publish its half-year results for the 28 weeks ended 11 April 2026 on Thursday, 21 May 2026. The scheduled release will provide investors and other stakeholders with updated insight into the company...
Delistings and Listing Changes
Mitchells & Butlers Adds New Ordinary Shares to London Listing
Neutral
May 13, 2026
Mitchells Butlers has announced the admission to trading of 39,600 additional ordinary shares on the Main Market of the London Stock Exchange, bringing the total number of its shares in issue and admitted to trading to 599,665,874. The newly admi...
Regulatory Filings and Compliance
Mitchells & Butlers Confirms Share Capital and Voting Rights Total
Neutral
Apr 30, 2026
Mitchells Butlers has reported that, as of 30 April 2026, its issued share capital comprises 599,662,265 ordinary shares, with no shares held in treasury. This establishes the total number of voting rights at the same figure, providing a clear de...
Other
Mitchells & Butlers Executives Add Shares Under Incentive Plan
Positive
Apr 27, 2026
Mitchells Butlers has reported routine director and senior manager share purchases under its Share Incentive Plan, indicating ongoing equity participation by its leadership. Chief executive Phil Urban and finance director Tim Jones each acquired ...
Executive/Board Changes
Mitchells & Butlers Confirms CFO Succession Timeline
Neutral
Apr 24, 2026
Mitchells Butlers has confirmed a planned change in its senior leadership, with Emma Harris formally joining the business on 20 April 2026 ahead of her succession to the role of Chief Financial Officer. She will take over from long-serving CFO an...
Regulatory Filings and Compliance
Mitchells & Butlers Confirms Share Capital and Voting Rights
Neutral
Mar 31, 2026
Mitchells Butlers has confirmed that as of 31 March 2026 its issued share capital comprises 599,631,337 ordinary shares, with no shares held in treasury. This establishes the total number of voting rights at the same figure, providing a clear den...
Other
Mitchells & Butlers Executives Add Shares Under Incentive Plan
Neutral
Mar 30, 2026
Mitchells Butlers has reported small share purchases in its own stock by senior executives under the company’s Share Incentive Plan. Directors Phil Urban and Tim Jones, along with PDMR Andrew Freeman, each acquired around mid-double-digit n...
Delistings and Listing ChangesPrivate Placements and Financing
Mitchells & Butlers Adds New Ordinary Shares to London Listing
Neutral
Mar 17, 2026
Mitchells Butlers plc has admitted 70,844 additional ordinary shares to trading on the Main Market of the London Stock Exchange, taking its total number of listed shares to 599,626,274. The newly issued shares are fully fungible with the existing...
Other
Mitchells & Butlers Executives Add Shares Through Incentive Plan
Positive
Mar 2, 2026
Mitchells Butlers has disclosed that directors Phil Urban and Tim Jones, along with PDMR Andrew Freeman, each acquired 46 ordinary shares in the company through the firm’s Share Incentive Plan. The purchases, executed by the SIP trustee on ...
Regulatory Filings and Compliance
Mitchells & Butlers Confirms Share Capital and Voting Rights Totals
Neutral
Feb 27, 2026
Mitchells Butlers has confirmed that, as of 27 February 2026, its issued share capital comprises 599,607,697 ordinary shares, with no shares held in treasury, establishing the total number of voting rights at the same figure. This disclosure clar...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.