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MAB

Mitchells & Butlers PLC

Travel and Leisure First-pass screen £1.5bn
300/1000 Overall fit
AI beneficiary 35% 15
Operating leverage 25% 40
Valuation 25% 30
Downside protection 15% 50

First-pass take

Mitchells & Butlers is a hospitality operator with zero AI exposure and minimal operating leverage. Despite 4.3% like-for-like sales growth, margin expansion was only 0.2ppts as cost inflation offset gains. FY2026 faces £130m headwinds (6% of cost base). Valuation unassessable without share price.

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