Whitbread PLC (GB:WTB) shares rose nearly 3% on Thursday after the hospitality company delivered an impressive performance in the third quarter of Fiscal 2024. The owner of the Premium Inn chain kept its previously issued FY24 guidance unchanged, as demand for hotels and travel remains strong despite macro pressures.
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Whitbread’s Q3 Performance
In Q3 FY24 (13 weeks ending November 30, 2023), overall sales grew 11%. Further, Premium Inn UK witnessed an 11% rise in accommodation sales and a 6% growth in food and beverage sales.
Meanwhile, Premium Inn Germany delivered a stellar growth of 47% in accommodation sales and 51% in food and beverage sales. Continued expansion of Whitbread’s estate in Germany drove the robust results in the region. The company said that its German business remains on track to break-even on a run-rate basis during the calendar year 2024.
Whitbread expects the momentum in the fiscal third quarter to continue in Q4 FY24. Looking ahead, the company is confident about Fiscal 2025, thanks to a “positive forward booked position” in the UK, a favourable supply backdrop, and cost efficiencies.
Are Whitbread Shares a Good Buy?
Following Whitbread’s Q3 FY24 update, Goldman Sachs analyst Ben Andrews reiterated a Buy rating with a price target of 4,550p. The analyst said the company’s trading update and FY25 outlook were broadly in line with expectations. He expects the FY24 and FY25 profit before tax estimates to remain essentially unchanged.
With seven Buys and two Holds, Whitbread stock earns a Strong Buy consensus rating. The average Whitbread PLC share price forecast of 4,212.78p implies 16% upside potential.
