Mitchells and Butlers on the road to FTSE 100 if it continues, said City Broker

Monday 21 July 2025 19:44

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Peel Hunt City Brokers have suggested Mitchells & Butlers, owners of Hospitality Chains All Bar One and Nicholson, can enter FTSE 100 if they continue to outperform the market.

Mitchells & Butlers have defeated the broader hospitality sector every year since 2017, growing 3.9 percent in the first quarter of 2025 versus the overall growth of 2.3 percent in the PUB sector.

It was the 171st largest company in FTSE in the last reshuffle, with a market capitalization of £ 1.66 billion and a stock price of 280p.

Peel Hunt expects at least 3.5 percent of annual sales growth for the company and has set a target stock price of 375p.

“The way the company outperforms in the polarized market shows every opportunity [our] Can be surpassed, “Peel Hunt said, describing the” road map “to FTSE100 for iconic chains.

“From [a] Low basis, we believe there are many estimates and ranks back to wait, “added the analysts.

The total revenue in the Harvester owner reached £ 1,454 million in 28 weeks ended April 12, up four percent of the years-to-year.

Head of Phil Urban said Mitchell’s performance was driven by cost efficiency and focusing on “Maximizing the attractiveness of guests” of many brands.

The company’s performance follows a series of trading results that are better than estimates for the British main PUB chain because they benefit from the scale of economy in the middle of a difficult time for small hospitality companies.

The British hospitality industry as a whole has reduced 69,000 jobs since the increase in the contribution of national insurance entrepreneurs has been in force, and continues to be beaten by high business levels, high energy costs and VAT.