Whitbread is a ‘hold’ says Share Centre

16th June 2015

As Whitbread reports its Q1 trading update, Graham Spooner, investment research analyst at The Share Centre, explains what the trading statement means for investors…

Whitbread, owner of brands such as Premier Inn, Brewers Fayre, Beefeater and Costa Coffee, this morning announced solid results in its Q1 trading update. Current investors should overall be pleased with the update and especially with the share price performance, which includes an 18% rise over the last year.

The group revealed a 4.3% rise in like for like sales growth, led by demand for Premier Inn and Costa Coffee. Whitbread said that this year, it plans to open around 5,500 new Premier Inn UK rooms and around 250 net new Costa stores worldwide.

Investors may be interested to know that after an impressive five years as chief executive, Andy Harrison will be standing down in December. During his tenure, Harrison has helped Whitbread’s stock value from £2.5bn to almost £10bn. Alison Brittain will be joining as Whitbread’s new chief executive this year.

With consumer demand for some of the group’s biggest brands showing no signs of stopping  and the group forecasting a good year, we currently recommend Whitbread as a ‘hold’ for medium risk investors looking to achieve a balanced portfolio.



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