Good trading momentum continues into FY26 MAB has reported its FY25 results with adj EBIT of £330m, +5.8% yoy, vs. consensus £327m (and the pre-close guidance in-line with consensus) and 30.9p adj EPS, +17% yoy. Having reported +4.2% 51wk LFL sales, the FY came in at +4.3% LFL (Q4 +3.2%) - trading in the 8 weeks to 22 November has been +3.8% LFL. With the cost inflation outlook reiterated post Budget, we don’t expect material changes to consensus EBIT (GBYe/consensus £330m) at this point though EPS could tick higher on lower leverage/net interest costs. Cost outlook reiterated post-Budget For FY26, the company is still looking to a gross inflationary outlook at this point of c.£130m (c.6% of the cost base), vs. c.£100m in FY25, of which c.60% is labour costs (and now does include MAB’s preliminary views on the incremental impacts of this week’s UK Budget – i.e. broadly neutral). For FY26, VA consensus currently has £2,817m sales, £330m EBIT and 30.7p adj EPS. Our view Shares are +5% ytd but are -12% since mid-summer over concerns around the UK Budget which in our view have now largely been assuaged. Despite the solid momentum, MAB now trades on just 8.4x cal.26 P/E and 5.9x EV/EBITDA – a discount to the sector on 10x/6.3x. While material earnings upgrades are unlikely today, given the unchallenging valuation, solid top-line delivery and confirmation of the cost outlook (albeit usually very conservative), MAB is our top pick in UK Hospitality.