Investor overview
Mitchells & Butlers is the leading operator of restaurants and pubs in the UK. It listed on the London Stock Exchange in April 2003 and is a member of the FTSE 250. Its restaurants and pubs have some of the highest average sales and profits per site in the industry and it operates the best portfolio of brands in the UK, with a focus on growth in the eating out market.
The business:
- has high average weekly sales and annual profitability per site, well above the average of our major competitors
- is competitively well positioned in the UK's attractive eating out market
- has significant opportunities to grow further through increasing the number of sites across a wide range of brands
- has funds to deliver this growth and the historical capex returns to support it, but will only invest where returns can be achieved in excess of our hurdle rates
- is highly cash generative and has a strong balance sheet of predominantly freehold assets with a net debt to EBITDA ratio of 4.7 times as at September 2011
