Mitchells & Butlers (LON:MAB) Releases Earnings Results

Mitchells & Butlers (LON:MAB) issued its quarterly earnings data on Thursday. The company reported GBX 17.40 EPS for the quarter, Digital Look Earnings reports. The company had revenue of GBX 149 billion during the quarter. Mitchells & Butlers had a net margin of 6.53% and a return on equity of 6.46%.

Here are the key takeaways from Mitchells & Butlers’ conference call:

• First-half operating profit held at GBP 181 million despite significant cost pressures, showing the business was able to offset inflationary headwinds with sales growth and Ignite-driven efficiencies.
• Like-for-like sales rose 3.3% in the first half, with Q1 up 4.5% and Q2 still positive at 1.8%, though weather and tougher comparisons made the trend harder to read.
• Cost headwinds were severe but may be easing: management said this year’s inflation burden is slightly below prior guidance and next year’s is expected to fall to about GBP 95 million, helped by lower National Insurance pressure and energy being partially locked in.
• Cash generation and the balance sheet improved further, with net debt reduced to just under GBP 750 million, gearing at about 1.6x EBITDA excluding leases, and net assets rising to GBP 4.91 per share.
• Management is continuing to invest for growth, including a higher CapEx plan of about GBP 230 million, new site acquisitions, the rollout of Guest 360 CRM, and ongoing AI and labor-efficiency initiatives under Ignite.

Mitchells & Butlers Trading Down 8.3%

Shares of Mitchells & Butlers stock traded down GBX 21 during trading on Thursday, reaching GBX 231.50. 1,336,481 shares of the stock were exchanged, compared to its average volume of 1,443,851. The company has a quick ratio of 0.46, a current ratio of 0.47 and a debt-to-equity ratio of 53.55. The firm has a market cap of £1.37 billion, a price-to-earnings ratio of 7.85, a price-to-earnings-growth ratio of 2.76 and a beta of 1.30. Mitchells & Butlers has a 1 year low of GBX 228 and a 1 year high of GBX 308. The stock’s fifty day moving average is GBX 261.35 and its 200 day moving average is GBX 265.14.

Analyst Upgrades and Downgrades

Several research analysts have commented on MAB shares. Berenberg Bank reaffirmed a “buy” rating and issued a GBX 1,150 price target on shares of Mitchells & Butlers in a report on Monday, March 30th. Jefferies Financial Group reissued a “buy” rating and set a GBX 355 price objective on shares of Mitchells & Butlers in a report on Thursday. Five research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of GBX 485.

Mitchells & Butlers Company Profile

Mitchells & Butlers is a leading operator of managed restaurants and pubs in the UK. It listed on the London Stock Exchange in April 2003 and is a member of the FTSE 250. Its restaurants and pubs have some of the highest average sales and profits per site in the industry and it operates the best portfolio of brands in the UK.