Mitchells & Butlers PLC

Kalkine’s “Global Travel and Leisure Report” delivers an in-depth analysis of leading companies and transformative trends shaping the travel ecosystem across the U.S., Canada, Australia, UK, and New Zealand. The report spans the full travel value chain from airlines and hospitality groups to digital travel platforms and the booming growth in leisure, entertainment, gaming/casinos, retail and consumer discretionary sectors, capturing how these segments are revolutionizing modern travel experiences.

The UK travel and leisure sector is undergoing a steady and sustainable recovery, supported by strong growth in luxury, adventure, and domestic travel. Despite this momentum, the industry continues to face hurdles such as rising costs from policy changes, inflationary pressures, labour shortages, and climate-related challenges. To maintain progress, stakeholders should focus on enhancing visitor spending, embracing digital innovation and experiential offerings, and appealing to new customer demographics. With enduring demand, a shift toward premium and experience-driven travel, and supportive digital trends, the sector presents compelling long-term opportunities for investors. It stands out as a promising option for those interested in recovery-driven, income-generating, or thematically aligned investments such as wellness and sustainable tourism.

Image source: © 2025 Krish Capital Pty. Ltd., Analysis: Kalkine Group 

UK’s travel and tourism industry continues to demonstrate resilience and recovery in 2024, contributing significantly to the national economy and employment landscape.

• The UK’s overall tourism economy is valued at approximately £140 billion and continues to show consistent growth.
• Inbound travel has rebounded strongly, surpassing pre-pandemic levels, while outbound travel by UK residents has reached record highs in both volume and spending.
• Online travel is growing steadily at a 6% annual rate, with business travel standing out as the fastest-growing segment within the sector.

Image source: © 2025 Krish Capital Pty. Ltd., Analysis: Kalkine Group

Image source: © 2025 Krish Capital Pty. Ltd., Analysis: Kalkine Group

Image source: © 2025 Krish Capital Pty. Ltd., Analysis: Kalkine Group

Image source: © 2025 Krish Capital Pty. Ltd., Analysis: Kalkine Group

Image source: © 2025 Krish Capital Pty. Ltd., Analysis: Kalkine Group 

Amid elevated Market Volatility and Global Economic Headwinds, Mitchells & Butlers PLC (LSE: MAB) stands out as our defensive pick within the
Travel & Leisure Sector, supported by rigorous fundamental and technical research.

Section1: Company Overview and Fundamental Insights:

Mitchells & Butlers PLC 

Mitchells & Butlers PLC (LSE: MAB) is a UK-based company listed on the FTSE 250 that runs a diverse portfolio of restaurants, pubs, and bars. With around 1,700 establishments, the company offers a wide range of dining and drinking experiences through its well-known brands. These include All Bar One, Browns, Ember Inns, Harvester, Miller & Carter, Nicholson’s, O’Neill’s, Toby Carvery, and Vintage Inns, among others. The company operates under multiple formats, from casual dining and carvery restaurants to traditional pubs and premium bars.

Kalkine’s Global Travel and Leisure Report covers the Investment Highlights, Key Financial Metrics, Risks, and Recent Business Updates along with the Valuation, Target Price, and Recommendation on the stock.

The top 10 shareholders together form ~80.89% of the total shareholding. Odyzean Ltd. & Artemis Investment Management LLP hold a maximum stake in the company at ~56.58% and ~6.08%, respectively.

In H1 FY25 results, the Company shows improved operating income and higher profit before tax, demonstrating effective cost management despite market challenges. The company's enhanced profitability is reflected in decent net margins and an improved debt-to-equity ratio, indicating positive financial progress.

Below charts data are compared on year-on-year basis

Section 2: Business Updates and Financial Highlights

Section 3: Key Risks and Company Outlook

Section 4: Stock Recommendation Summary 

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is 04 September 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level which the stock is expected to reach as per the relative valuation method and or technical analysis taking into consideration both short-term and long-term scenarios.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and or REFINITIV. Typically, both sources (LSE and or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.

Note 6: Dividend Yield may vary as per the stock price movement.  

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock. 

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock. 

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.