M&B’s H1 performance was slightly ahead of our estimates. Key takeaways were stronger lfl growth (led by both food and drinks) and a 20bp improvement in the adjusted operating margin. In H2, we expect the lfl growth to soften a bit. Our stance on profitability remains cautious for the years ahead as UK consumer demand remains uncertain (Brexit is still a key pain-point) and M&B needs to absorb a high fixed cost base. No change in the stock recommendation.
30 May 2019
Strong momentum continues
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Strong momentum continues
Mitchells & Butlers plc (MAB:LON) | 231 1.2 0.2% | Mkt Cap: 1,382m
- Published:
30 May 2019 -
Author:
Nishant Choudhary -
Pages:
3
M&B’s H1 performance was slightly ahead of our estimates. Key takeaways were stronger lfl growth (led by both food and drinks) and a 20bp improvement in the adjusted operating margin. In H2, we expect the lfl growth to soften a bit. Our stance on profitability remains cautious for the years ahead as UK consumer demand remains uncertain (Brexit is still a key pain-point) and M&B needs to absorb a high fixed cost base. No change in the stock recommendation.