ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is two times the semi-annual (Mar. 2026) net income data. The Revenue data used here is two times the semi-annual (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
Mitchells & Butlers ROE % Related Terms
Mitchells & Butlers ROE % Historical Data
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The historical data trend for Mitchells & Butlers's ROE % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Restaurants subindustry, Mitchells & Butlers's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Mitchells & Butlers ROE % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Mitchells & Butlers's ROE % distribution charts can be found below:
* The bar in red indicates where Mitchells & Butlers's ROE % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is two times the semi-annual (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Mitchells & Butlers (MBPFF) has a ROE % of 7.40% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Mitchells & Butlers and its competitors. This is 44% above median its historical median of 5.14. According to the industry distribution chart, Mitchells & Butlers ranks #170 out of 346 companies in the Restaurants industry, placing it in the top 49.1%.
Is Mitchells & Butlers' ROE % too high?
Mitchells & Butlers' current ROE % of 7.40% is 44% above median its 10-year median of 5.14. The Restaurants industry median ROE % is 6.38. Mitchells & Butlers' value of 7.40% is 16% above this industry median. Based on the distribution chart, Mitchells & Butlers ranks #170 out of 346 companies in the Restaurants industry, which is above the industry midpoint. Overall, Mitchells & Butlers has a GF Score™ of 81/100, reflecting its overall financial health beyond just this single metric.
How does Mitchells & Butlers' ROE % compare to MCD and SBUX?
According to the Restaurants industry distribution chart, Mitchells & Butlers ranks #170 out of 346 companies for ROE %. This puts Mitchells & Butlers in the upper half of its industry. The industry median ROE % is 6.38. Mitchells & Butlers' value of 7.40% is 16% above this benchmark. While the company's 10-year median is 5.14 vs. the industry median of 6.38, Mitchells & Butlers has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for a Restaurants company?
The median ROE % among Restaurants companies is 6.38, based on 346 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Mitchells & Butlers's current ROE % of 7.40% is 16% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Mitchells & Butlers and its competitors. For the Restaurants industry, the median ROE % is 6.38 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Mitchells & Butlers's current ROE % is 7.40%, which is 44% above median its own 10-year median of 5.14. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Mitchells & Butlers stock overvalued right now?
Mitchells & Butlers (MBPFF) has a current ROE % of 7.40%. The stock's GF Value™ is $3.83, compared to a current price of $3.41 — trading 11% below its estimated fair value. The current ROE % is 7.40%, which is 44% above median its 10-year median of 5.14 and 16% above the Restaurants industry median of 6.38. Mitchells & Butlers' overall GF Score™ is 81/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Mitchells & Butlers (MBPFF), the current ROE % is 7.40% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Mitchells & Butlers (MBPFF) Overvalued in 2026?
Based on GuruFocus' analysis, Mitchells & Butlers stock appears to be undervalued.
The current stock price of $3.41 is trading 11% below its estimated GF Value™ of $3.83.
Key valuation signals for MBPFF:
ROE %: 7.40% (44% above median its 10-year median of 5.14)
GF Value™: $3.83 vs. price of $3.41 (11% below fair value)
Industry Position: 16% above the Restaurants median (#170 of 346)
No single metric tells the full story. See the MBPFF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Mitchells & Butlers PLC operates and manages pubs and pub restaurants in the United Kingdom and Germany. The group's properties operate under the brands Vintage Inns, Stonehouse, Toby Carvery, Harvester, Sizzling Pub Co., All Bar One, Ember Inns, and others. Its geographic segments include the UK and Germany of which it generates the majority of its revenue from the UK.
81GF Score
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