Mitchells and Butlers on road to FTSE 100 if streak continues, City broker says

Monday 21 July 2025 7:44 pm

Metropolis dealer Peel Hunt has steered Mitchells & Butlers, proprietor of hospitality chains All Bar One and Nicholson’s, may make its manner into the FTSE 100 if it continues to outperform the market.

Mitchells & Butlers has crushed the broader hospitality sector yearly since 2017, rising at 3.9 per cent within the first quarter of 2025 versus 2.3 per cent total progress within the pub sector.

It was the 171st-largest firm on the FTSE on the final reshuffle, with a market cap of £1.66bn and a share value of 280p.

Peel Hunt expects not less than 3.5 per cent annual gross sales progress for the corporate and has set a goal share value of 375p.

“The way in which the corporate has been outperforming in a polarising market suggests each probability that [our] may very well be exceeded,” Peel Hunt mentioned, describing a “roadmap” to the FTSE100 for the long-lasting chain.

“From [a] low base, we consider there may be loads of forecast and re-rating upside for buyers to stay up for,” analysts added.

Whole income on the Harvester proprietor reached £1,454m within the 28 weeks ended April 12, up 4 per cent year-on-year.

Chief Phil City mentioned Mitchells’ efficiency was pushed by value efficiencies and a give attention to “maximising the visitor enchantment” of its many manufacturers.

The corporate’s efficiency follows a string of better-than-expected buying and selling outcomes for Britain’s main pub chains as they profit from economies of scale amid a troublesome time for small hospitality firms.

The UK hospitality trade as a complete has shed 69,000 jobs since an increase in employers’ nationwide insurance coverage contributions took impact, and continues to be battered by excessive enterprise charges, excessive power prices and VAT.