Core Viewpoint - Mitchells and Butlers reported forecast-beating profits for the last financial year, leading to a significant increase in share price, reflecting strong operational performance and strategic positioning in the market [2][9]. Financial Performance - Revenues increased by 3.9% to £2.7 billion for the 12 months ending 27 September [2]. - On a like-for-like basis, turnover rose by 4.3%, outperforming the broader market by approximately 3% [3]. - Earnings per share (EPS) grew by 19% to 29.7p [3]. - Adjusted operating profit increased by 5.8% to £330 million [4]. - The adjusted operating profit margin improved by 20 basis points year-on-year to 12% [5]. Cost Management - The company faced cost headwinds of £100 million, primarily due to increased labor costs [4]. - Despite these challenges, the company implemented its Ignite cost efficiency program, which contributed to maintaining profit margins [5]. Debt and Capital Expenditure - Net debt decreased to £843 million from £989 million the previous year [6]. - Capital expenditure rose by £27 million year-on-year to £181 million, driven by site refurbishments [6]. - Net asset values improved to 476p per share from 433p in the previous financial year [6]. Future Outlook - The CEO expressed confidence in managing anticipated cost pressures of approximately £130 million in financial 2026, attributed to labor cost increases and food cost inflation [7]. - The company reported a strong start to the current fiscal year, with like-for-like sales up 3.8% in the first eight weeks [7]. - Analysts predict a 1% dip in EPS for financial 2026, followed by an 8% recovery in the subsequent year [9]. Market Sentiment - Seven out of ten brokers rate Mitchells shares as a 'strong buy' or 'buy,' while three have a 'hold' rating [10]. - The company is currently trading at a forward price-to-earnings (P/E) ratio of 8.7 times based on current forecasts [10].