Mitchells & Butlers (LON:MAB) Issues Quarterly Earnings Results

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

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 Stock Performance

Mitchells & Butlers stock opened at GBX 230.57 on Thursday. The company’s 50-day moving average price is GBX 261.35 and its 200-day moving average price is GBX 265.14. Mitchells & Butlers has a twelve month low of GBX 229 and a twelve month high of GBX 308. 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 company has a market cap of £1.37 billion, a PE ratio of 7.82, a price-to-earnings-growth ratio of 2.76 and a beta of 1.30.

Wall Street Analyst Weigh In

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

About Mitchells & Butlers

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.