M&B’s Q3 performance was in line with our expectations (+0.9% lfl vs pre-COVID-19 levels). However, management expects stronger pressure on the margin in the medium term, largely due to inflationary headwinds. Despite the testing times, we believe the stock has been bashed much more than justified. The company is also better placed (vs peers) to ward off recession due to its 82% freehold estate and solid backing from the key shareholder (Odyzean). We will trim our financial estimates but maintai ....
21 Jul 2022
Decent show in Q3; tough times ahead!
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Decent show in Q3; tough times ahead!
Mitchells & Butlers plc (MAB:LON) | 231 3.5 0.7% | Mkt Cap: 1,382m
- Published:
21 Jul 2022 -
Author:
Nishant Choudhary -
Pages:
3
M&B’s Q3 performance was in line with our expectations (+0.9% lfl vs pre-COVID-19 levels). However, management expects stronger pressure on the margin in the medium term, largely due to inflationary headwinds. Despite the testing times, we believe the stock has been bashed much more than justified. The company is also better placed (vs peers) to ward off recession due to its 82% freehold estate and solid backing from the key shareholder (Odyzean). We will trim our financial estimates but maintai ....