Strong LfL, as expected MAB’s pre-close trading statement, covering the 51 weeks ended 20 September 2025, showed that the company has maintained outperformance against the market in terms of LfL revenue, with “robust performances in mid-market pub and pub restaurants balanced against slightly weaker sales in London within the M25 and in more premium businesses”. LFL sales in the period were overall up 4.2% YtD, with total sales up 3.9%. The company continues to rollout cost saving initiatives. Outlook statement suggests no changes in FY25/26 consensus Outlook statement: MAB remains confident in FY numbers “in line with consensus expectations”. For next year, they continue to expect a higher level of overall cost inflation of around GBP130m (c.6% of cost base), as previously outlined, with potential to offset part of this via continued sales outperformance and the cost containment plan. Our numbers are in line with FactSet consensus (FY25E Adjusted EBIT of £326m vs consensus at £327m, FY26E of £326m vs consensus at £328m). A relatively strong player in a challenged space While the hospitality sector has been, and is likely to continue to be, seriously damaged by the 2024 Autumn Budget, we see larger and more structured operators able to overcome most of the headwinds. MAB is among them. The stock is trading on attractive multiples (8.4x/8.0x P/E and 6.2x/5.8x EV/EBITDA for FY26/27E) even in the context of the current uncertain outlook for pubs. BUY.