20th October 2015
As Whitbread reports its interim results, Ian Forrest, investment research analyst at The Share Centre, explains what it means for investors…
This morning, hotel, cafe and restaurant manager Whitbread announced underlying pre-tax profits of £291.3m, which was ahead of market expectations. The Premier Inns and Restaurants segments slightly underperformed, whilst Costa café chain outperformed expectations. Investors should acknowledge that the group believes it remains on track to meet full year forecasts, and is confident that it can achieve the longer term 2018 and 2020 milestone targets, as it continues to invest in its businesses.
We continue to recommend Whitbread as a ‘hold’ due to its good growth and the attractiveness of its business model. However, investors should acknowledge that much of that is already reflected in the share price. For investors interested in the sector, our preferred stock to ‘buy’ is Restaurant Group.