Mitchells and Butlers on road to FTSE 100 if streak continues, City broker says
City broker Peel Hunt has suggested Mitchells & Butlers, owner of hospitality chains All Bar One and Nicholson’s, could make its way into the FTSE 100 if it continues to outperform the market.
Mitchells & Butlers has beaten the wider hospitality sector every year since 2017, growing at 3.9 per cent in the first quarter of 2025 versus 2.3 per cent overall growth in the pub sector.
It was the 171st-largest company on the FTSE at the last reshuffle, with a market cap of £1.66bn and a share price of 280p.
Peel Hunt expects at least 3.5 per cent annual sales growth for the company and has set a target share price of 375p.
“The way the company has been outperforming in a polarising market suggests every chance that [our] could be exceeded,” Peel Hunt said, describing a “roadmap” to the FTSE100 for the iconic chain.
“From [a] low base, we believe there is plenty of forecast and re-rating upside for investors to look forward to,” analysts added.
Total revenue at the Harvester owner reached £1,454m in the 28 weeks ended April 12, up four per cent year-on-year.
Chief Phil Urban said Mitchells’ performance was driven by cost efficiencies and a focus on “maximising the guest appeal” of its many brands.
The company’s performance follows a string of better-than-expected trading results for Britain’s major pub chains as they benefit from economies of scale amid a tough time for small hospitality companies.
The UK hospitality industry as a whole has shed 69,000 jobs since a rise in employers’ national insurance contributions took effect, and continues to be battered by high business rates, high energy costs and VAT.