Highlights

  • Mitchells & Butlers has received Buy ratings from both Jefferies and Investec.
  • The analysts assigned target prices of GBX 355 and GBX 340
  • The company began the new financial year with positive momentum.

Mitchells & Butlers PLC (LSE:MAB) has drawn renewed attention from the investment community following the release of its full-year results for the 52 weeks ended 27 September 2025. Notably, analysts at Jefferies have issued a Buy rating with a target price of GBX 355, while Investec Bank (UK) PLC has also assigned a Buy rating, setting its target at GBX 340.

The dual Buy ratings arrive at a time when the group is demonstrating steady progress across key financial measures, continued operating discipline, and resilient consumer engagement across its estate.

Trading Performance Ahead of the Market

The latest fiscal year saw Mitchells & Butlers deliver another period of outperformance, with like-for-like sales growing 4.3%, outpacing market trends. Adjusted operating profit rose to GBP 330 million, a year-on-year increase of 5.8%. The group also improved its adjusted operating margin to 12.2%,.

Reported revenue increased to GBP 2,711 million, up from GBP 2,610 million in FY 2024, while operating profit strengthened to GBP 322 million. Profit before tax climbed to GBP 238 million, continuing the positive trajectory established in previous years. Basic earnings per share rose significantly to 29.7 pence, compared with 25.0 pence last year,

Balance Sheet and Enhanced Financial Position

Mitchells & Butlers continued to improve its financial resilience over the period. Net debt, excluding lease liabilities, fell to GBP 843 million, a reduction of GBP 146 million from the previous year. The group also reported an increase in net asset value, rising to 476 pence per share. A pension surplus continues to support the business by offsetting ongoing defined contribution payments amounting to approximately GBP 10 million per year.

Operationally, the business delivered positive results across all market segments. An accelerated capital programme generated favourable returns, and the group achieved record non-financial metrics across guest satisfaction, employee engagement, and safety performance—clear indicators of sustained investment in quality and culture.

Positive Start to FY 2026

The new financial year has begun on a positive note, with like-for-like sales rising 3.8% in the first eight weeks. This early momentum aligns with the optimistic sentiment reflected in recent analyst ratings, reinforcing expectations of continued steady performance.