More on Whitbread
Whitbread: trading statement
There has been little change since last year. The budget hotel chain, Premier Travel Inn continues to produce strong like-for-like growth (6.7%) on top of its expansion (another 7%) while pubs continue to decline (sales down 2% like-for-like).
The remaining businesses, David Lloyd Leisure and the high street restaurants produced flat or negative like-for-like growth in real terms - 2.1% and 1.9% respectively.
Although the strong like-for-like performance at Premier Travel Inn and expansion means that total growth was a creditable 7%, Whitbread still looks fairly pricey on a prospective PE of 18× with a 2.5% yield.
The sale of 235 Beefeater and Brewers Fayre pub restaurants will leave Whitbread more focused, especially if it is followed by by further disposals of under-performing businesses and expansion of the most successful (budget hotels and Costa Coffee).
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