Mitchells & Butlers Regulatory News (MAB)

MITCHELLS & BUTLERS PLC

LEI no: 213800JHYNDNB1NS2W10

21 May 2026

HALF YEAR RESULTS

(For the 28 weeks ended 11 April 2026)

Highlights

Reported results

Trading results

Balance sheet and cash flow

Phil Urban, Chief Executive, commented:

"We have delivered another robust performance over the first half reflecting continued focus on enhancing guest appeal across our diverse portfolio of brands, driving sales growth through compelling customer offers and disciplined execution. Maintaining profits despite the significant inflationary cost challenges facing the sector is testament to the dedication of our teams in delivering the benefits of our Ignite and capital programmes. 

Despite the backdrop of macro uncertainty our priorities remain unchanged, our guest scores are at record highs, we remain committed to the delivery of quality experiences, and we are well placed to further grow market share."

Definitions

a - The Directors use a number of alternative performance measures (APMs) that are considered critical to aid the understanding of the Group's performance. APMs are explained later in this announcement.

There will be a presentation held today at 8:30am accessible by phone on 0203 936 2999, code: 235375 and at https://www.netroadshow.com/events/login/1PeTHmohYBazaFEIhmscj4V6Rf62GltvvIug6

The slides will also be available on the website at www.mbplc.com. The replay will then be available at https://www.mbplc.com/hy2026/analystspresentation

All disclosed documents relating to these results are available on the Group's website at www.mbplc.com

For further information, please contact:

Note for editors:

Mitchells & Butlers is a leading operator of managed restaurants and pubs. Its portfolio of brands and formats includes Harvester, Toby Carvery, All Bar One, Miller & Carter, Premium Country Pubs, Sizzling Pubs, Stonehouse, Vintage Inns, Browns, Castle, Nicholson's, O'Neill's, Ember Inns, Ego Restaurants and Pesto. In addition, it operates Innkeeper's Collection hotels in the UK and Alex restaurants and bars in Germany. Further details are available at www.mbplc.com and supporting photography can be downloaded at www.mbplc.com/imagelibrary.

CURRENT TRADING AND OUTLOOK

We traded strongly through the first half of the year with like-for-like salesa growth of 3.3%. Despite significant cost inflation, due primarily to labour costs and food inflation, our disciplined cost control combined with delivery of Ignite efficiencies has resulted in stable operating profita of £181m (HY 2025 £181m). 

Like-for-like salesa grew by 3.0% in the 30 weeks to 25 April, including Easter in both years, driven by a very strong first quarter. In the most recent 3 weeks like-for-like salesa growth of 1.1% was broadly consistent with the second quarter reflecting a strong prior year comparative, which benefited from favourable weather alongside some indications of macroeconomic pressures and, more recently, disruption from tube strikes. Over the first half we continued our outperformance to the marketb overall as measured by the CGA Business Tracker.

Cost headwinds for the current financial year are anticipated to be c.£120m before mitigation, slightly lower than previously guided, representing c.5.5% of our cost base. This will be about 60% weighted to the first half due principally to the increased rate of employers' national insurance contributions, which was effective from April 2025, annualising at the half year. Energy costs have now been fully secured for the current financial year. 

We expect cost headwinds, before mitigation, for the FY 2027 financial year to normalise at a lower level of around £95m, representing c.4% of our cost base. We currently have 15% of energy costs secured for FY 2027.

Looking forward, with a strong balance sheet, an enviable estate of well positioned sites backed by a diversified portfolio of brands and offers, we face the future with confidence that we will continue to be successful in our market and generate further value.

BUSINESS REVIEW

Total sales across the period were £1,490m reflecting 2.5% growth on HY 2025. Like-for-like salesa increased by 3.3% with strong performances through the brand portfolio. Adjusted operating profita of £181m was maintained (HY 2025 £181m) despite significant inflationary cost headwinds. 

The business traded very strongly across the festive season with like-for-like salesa growth of 7.7% over the core three-week periodc, supported by volume growth, and particularly over the five key festive daysd which generated combined like-for-like salesa growth of 10.5%. Through the first quarter like-for-like salesa strengthened across the brand portfolio, growing to 4.5%, and remaining well ahead of the marketb.

Sales growth in the second quarter reduced to 1.8%, comprising drinks sales growth of 0.7% and food sales growth of 3.0%, reflecting a strong performance comparative, which benefitted from favourable weather. Broader macroeconomic conditions also appear to have had a modest impact on discretionary spending during the period. However encouragingly key dates continued to perform well, with like-for-like growth achieved on Mother's Day against a very strong performance last year. 

Over the first half, we continued to outperform the marketb as represented by the CGA Business tracker, and we are confident that this will continue into the second half and beyond.

Over the past year the industry has faced a wave of increased cost headwinds resulting in a return to supply contraction across the sector, after numbers had begun to stabilise in early 2025. In the six months to April 2026 there was an average of 20 net closures a week with food-led sites being particularly impacted (NIQ Hospitality Market Monitor April 2026).

OUR STRATEGIC PRIORITIES

Our strategy, based on three key pillars, has provided the foundation for our ongoing strong performance. We focus on maximising the value generated from our 83% freehold and long leasehold estate, utilising the diversity of our brand portfolio to grow market share with appeal across a broad range of consumer occasions, demographics and locations. The diversity of our portfolio is a key strength, particularly in periods of uncertainty, with trusted, well‑known brands offering guests flexible choices that allow them to tailor their eating‑out decisions to their needs.

Our Ignite programme of work remains a key focus for the business and is at the core of our long-term value creation. We currently have around 40 initiatives underway across a range of areas, all focused on driving sales and delivering cost efficiencies. A number of initiatives focus specifically on enhancing guest experience in order to drive sales growth and build loyalty. The success of these initiatives is reflected in sustained like-for-like salesa growth as well as continued improvement in guest review scores, which averaged 4.7 out of 5 over the first half. 

Enhancing productivity and efficiency to help mitigate inflationary costs remains an important focus and has been critical in delivering stable profits over the first half. We have a range of tools and initiatives in place designed to improve operational efficiency including our labour scheduling system which takes a data-led approach to enhancing the deployment of our teams. This system enables our General Managers to maximise sales at busy times as well as reducing costs in shoulder periods to increase profitability over the day. Given our scale, marginal gains in deployment at site level aggregate to significant margin efficiencies at group level. We therefore remain focused on maximising the potential value of this technology.

We are committed to enhancing the efficiency of our buildings and continue to roll out the use of remote control in-site energy systems which have delivered proven energy consumption savings. Remote control of heating, for example, provides a significant opportunity to reduce consumption whilst also relieving our managers of one of their many daily tasks, allowing them to focus on guests. Our energy initiatives help us to improve efficiency whilst also supporting our sustainability objectives.

We are embracing the opportunity associated with building AI functionality into our guest journey, as well as in our central support functions, with a number of trials underway. For example, we are trialling AI technology at our host point which provides individual guest preferences to personalise the host's interaction with guests. In addition, we have built chatbot functionality into a brand website to respond to guests' increasing expectation of being able to access information quickly and effectively through a conversational format. We believe there are multiple further opportunities to utilise AI to deliver value across the organisation and will continue to explore and grow opportunities in this area. 

In technology, we are also investing in a new HR platform, delivering enhanced efficiency of compliance for our central teams alongside functionality designed to improve team productivity and retention. Following extensive development and testing, the system will go live over the summer. In addition, our new guest data platform enables more personalised engagement, supporting guest loyalty and allowing us to use our data more effectively to drive targeted, higher‑return marketing activity. We have also invested in estate-wide replacement of end-of-life network infrastructure and transition to a new long-term technology platform and hosting partner.

Our capital programme continues to deliver significant value through improving the competitive position of our pubs and restaurants within their local markets. Enhancing the effectiveness of delivery of the programme has long been an area of Ignite focus, ensuring optimisation of closure and re-opening timing, streamlining of costs and rigorous analysis of post-investment performance. Over the first half, we completed 122 investment projects comprising 113 remodels, 4 conversions and 5 acquisitions. We are generating strong returns, currently in excess of 30% on remodels, justifying an increasing allocation of capital to this area as we look to re-establish an average 7-year investment cycle.

We acquired 5 sites during the period, one of which was the purchase of the freehold of a site which we previously held as leasehold. Four new sites were acquired, one of which is in Germany and the remaining three in the UK of which two properties include hotel rooms. We remain opportunistic in relation to new site acquisition and welcome the opportunity to add high quality sites to the estate. 

PEOPLE

Our people remain fundamental to delivering great guest experiences, with engagement continuing to strengthen across all employee groups and turnover falling further and reaching record low levels during the first half of the year. This sustained progress reflects the strength of our Employee Value Proposition, combining a strong sense of belonging and security with clear development and progression opportunities. We are proud to be recognised as the number one apprenticeship employer in the Department for Education awards, as rated by our own apprentices. We continue to invest in talent technology which further supports skills development and career progression.

SUSTAINABILITY

We are committed to reducing the environmental impact of our business and the Board has challenging targets to drive continued momentum in this area. We have committed to:

- Net Zero emissions by 2040, including scope 1, 2 and 3

- Zero operational waste to landfill by 2030

- 50% reduction in food waste by 2030

We remain focused on working towards our sustainability goals and are pleased with the progress we have made. During the first half we have continued to invest in sustainability capital, we now have 274 sites with solar panels, and significant further opportunity to grow our production of renewable energy. We have electrified 100 kitchens, reducing our reliance on gas for cooking, and have fully removed gas in 29 sites taking the learnings from these projects forward to expand the removal of gas in the coming years.

Our teams are vital to the delivery of progress in other areas where behaviour change and engagement is required to deliver progress. One example of this is recycling, and we are pleased to have increased our recycling rates to over 60% in the year to date. We provide support for these types of initiatives through our dedicated network of sustainable operations ambassadors, as well as centrally developed online training.

From a social perspective we are proud of our charity partnership with Social Bite, focused on addressing the issue of homelessness in the UK. We have raised over £2.5m over the past 18 months to support Social Bite's work and have employed 40 people impacted by homelessness through our Job's First programme, providing support and access to our best-in-class training capabilities.

We know that our people are passionate about improving the environmental impact of our business whilst having a positive impact on the communities we operate in and are pleased to deliver continued progress in this area, further enhancing our employer proposition.

FINANCIAL REVIEW

On a statutory basis, profit before tax for the half year was £143m (HY 2025 £134m), on sales of £1,490m (HY 2025 £1,454m). 

The Group Income Statement discloses adjusted profit and earnings per share information that excludes separately disclosed items, disclosed by virtue of their size or nature, to allow a more effective comparison of the Group's trading performance from one period to the next.

At the end of the period, the total estate comprised 1,712 sites in the UK and Germany of which 1,638 are directly managed.

Revenue

Total revenue of £1,490m (HY 2025 £1,454m) reflects growth of 2.5%, a strong period of trading.

Like-for-like salesa in the first half increased by 3.3%, comprising an increase in like-for-like food salesa of 4.1% and of like-for-like drink salesa of 2.4% driven by strengthening spend per head. Slower sales growth in the second quarter reflected a strong prior year comparative, which benefited from unseasonably favourable weather, alongside some indications of macroeconomic pressure on spending.

Like-for-like salesa:

Like-for-like salesa grew by 3.0% in the 30 weeks to 25 April, including Easter in both years and by 1.1% in the most recent 3 week period.

Separately disclosed items

Separately disclosed items are identified due to their nature or materiality to help the reader form a view of overall and adjusted trading. In the period net profit after tax arising on property disposals of £3m was recognised as a separately disclosed item. Refer to Note 4 to the consolidated financial statements for comparative information.

Operating profit and marginsa

Adjusted operating profita for the first half was £181m (HY 2025 £181m), in line with the first half of the previous year.

Cost headwinds for the current financial year are anticipated to be £120m before mitigation, representing c.5.5% of our cost base. This is expected to be 60% weighted to the first half in part due to £11m relating to the increased rate of employer national insurance contribution, effective from April 2025, annualising at the half year. Energy costs have now been fully secured for the current financial year. Adjusted operating margin of 12.1% was 0.3ppts lower than HY 2025 driven by these inflationary costs.

We expect cost headwinds, before mitigation, for FY 2027 to normalise at around £95m, representing c.4% of our cost base.

Interest

Net finance costs of £45m (HY 2025 £50m) for the half year were £5m lower than the same period last year as gearing reduced. The net pensions finance income of £3m (HY 2025 £3m) reflects the surplus funding position now recognised on the balance sheet.

Earnings per share

Basic earnings per share were 17.9p with adjusted earnings per sharea of 17.4p (HY 2025 16.8p basic and adjusted earnings per sharea).

The basic weighted average number of shares in the period was 597m and the total number of shares issued at the balance sheet date was 600m.

Cash flow

Net cash inflow for the period before bond amortisation of £98m (HY 2025 £131m) benefitted from £7m utilisation of pension surplus towards ongoing DC contributions and working capital inflow of £45m due to payment timing differences. Capital expenditure increased to £117m with a further £11m outflow in respect of the contingent consideration element of the acquisition of Pesto Restaurants.

After all outgoings, including mandatory bond amortisation of £68m (including the net impact of currency swaps), cash inflow was £30m (HY 2025 £67m).

Capital expenditure

Capital expenditure of £117m (HY 2025 £92m) comprises £115m from the purchase of property, plant and equipment and £2m in relation to intangible assets.

Maintenance and infrastructure investment in the period was elevated due to estate-wide replacement of end-of-life network infrastructure and transition to a new long-term technology platform and hosting partner. Our solar panel installation programme also accelerated over the first half.

We acquired 5 sites during the first half for total consideration of £12m. Four new trading sites were acquired, one in Germany and three in the UK, with two properties including hotel rooms. In addition, we purchased the freehold of one previously leased site. Since the balance sheet date, a further two freehold sites have been acquired. 

Remodel project numbers have increased in the period as we remain committed to the resumption of an average seven-year refurbishment cycle across our estate, supported by strong returns with the programme continuing to generate returns in excess of 30% .

On the basis of strong returns and an increase in site acquisition we expect total capital expenditure in the year to increase to c.£230m.

Pensions

Retirement and death benefits are now provided principally by the Mitchells & Butlers Pension Plan (MABPP).

During the period, the MABPP defined benefit surplus has continued to fund the settlement of costs relating to the defined contribution section of the plan. In the current period the plan has funded £7m (HY 2025 £3m) of employer contributions.

In addition, one further scheme remains. This is closed and unfunded and has estimated liabilities of £21m (HY 2025 £21m).

Net debt and facilities

On the back of a strong cash performance, net debta at the period end reduced to £1,152m, comprised of £747m non-lease liabilities and lease liabilities of £405m (HY 2025 £1,298m comprised of £860m non-lease liabilities and lease liabilities of £438m). This represents a multiple of 1.6 times EBITDA over the last year excluding lease liabilities (2.5 times including these liabilities).

Further details of existing debt arrangements and an analysis of net debt can be found in Note 10 to the financial statements and at https://www.mbplc.com/infocentre/debtinformation/. 

Going Concern

After considering forecasts, sensitivities and mitigating actions available to management and having regard to risks and uncertainties, the Directors have a reasonable expectation that the Group has adequate resources to continue to operate within its borrowing facilities and covenants for a period of at least 12 months from the date of signing the financial statements. Accordingly, the financial statements have been prepared on the going concern basis. Full details are included in Note 1.

Director's responsibility statement

We confirm that to the best of our knowledge:

This responsibility statement was approved by the Board of Directors on 20 May 2026 and is signed on its behalf by:

Tim Jones

Chief Financial Officer

20 May 2026

Definitions

a - The Directors use a number of alternative performance measures (APMs) that are considered critical to aid the understanding of the Group's performance. Key measures are explained later in this announcement.

b - As measured by the CGA Business Tracker

c - 14 December 2025 to 3 January 2026

d - Christmas Eve, Christmas Day, Boxing Day, New Year's Eve, New Year's Day

GROUP CONDENSED INCOME STATEMENT

for the 28 weeks ended 11 April 2026

All results relate to continuing operations.

GROUP CONDENSED STATEMENT OF COMPREHENSIVE INCOME

for the 28 weeks ended 11 April 2026

GROUP CONDENSED BALANCE SHEET

GROUP CONDENSED STATEMENT OF CHANGES IN EQUITY

for the 28 weeks ended 11 April 2026

GROUP CONDENSED CASH FLOW STATEMENT

for the 28 weeks ended 11 April 2026