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Whitbread
(LSE:WTB)
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Rating:68Neutral
Price Target:
2,736.00 p
▲(9.75% Upside)
Action:Reiterated
Date:10/13/26
The score is mainly driven by mixed financial quality: strong operating margins and positive operating cash flow are offset by elevated leverage, declining equity, and notably weaker free cash flow in the latest year. Offsetting this, technicals are supportive with the share price above major moving averages and positive momentum, and the latest earnings call was upbeat with efficiencies ahead of plan and confident guidance, though cost pressures and execution/phasing risks remain. Valuation is reasonable but not clearly cheap, supported by a ~3.9% dividend yield.
Positive Factors
UK Market Position
Whitbread is demonstrating resilient demand and market share performance in its core U.K. estate, while keeping operating costs flat despite inflation. This combination supports the durability of the Premier Inn model and gives the company a stronger base for sustained earnings.
Negative Factors
Elevated Leverage
Meaningful leverage and a shrinking equity base reduce financial flexibility for a capital-intensive lodging business. Higher debt exposure can constrain investment choices, increase sensitivity to financing conditions, and make it harder to absorb weaker trading or unexpected operating costs.
Read all positive and negative factors
Positive Factors
Negative Factors
UK Market Position
Whitbread is demonstrating resilient demand and market share performance in its core U.K. estate, while keeping operating costs flat despite inflation. This combination supports the durability of the Premier Inn model and gives the company a stronger base for sustained earnings.
Read all positive factors
Whitbread (WTB) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£4.59B
Dividend Yield3.54%
Average Volume (3M)650.34K
Price to Earnings (P/E)79.1
Beta (1Y)0.91
Revenue Growth1.99%
EPS Growth-75.93%
CountryUK
Employees31,615
SectorConsumer Cyclical
Sector Strength84
IndustryTravel Lodging
Share Statistics
EPS (TTM)0.35
Shares Outstanding167,741,530
10 Day Avg. Volume688,913
30 Day Avg. Volume650,344
Financial Highlights & Ratios
PEG Ratio-1.58
Price to Book (P/B)1.43
Price to Sales (P/S)1.54
P/FCF Ratio45.56
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£2,550.00Price Target Upside2.29% Upside
Rating ConsensusHold
Number of Analyst Covering6
EPS Forecast (FY)1.79
Revenue Forecast (FY)£2.91B
Whitbread Business Overview & Revenue Model
Company Description
Whitbread plc is a prominent hospitality firm managing a portfolio of hotels and restaurants across the United Kingdom, Germany, and other international markets. The company's hotel division encompasses approximately 841 hotels boasting 82,286 roo...
How the Company Makes Money
Whitbread makes money mainly by operating hotels under the Premier Inn brand and generating revenue from selling room nights to leisure and business travelers. The largest revenue stream is accommodation revenue, earned through nightly room rates ...
Whitbread Earnings Call Summary
Earnings Call Date:Oct 13, 2026
(Q2-2027)
| % Change Since: |
Next Earnings Date:Apr 27, 2027
Earnings Call Sentiment Positive
The call was strongly positive overall. Whitbread reported growth and market outperformance in both the U.K. and Germany, delivered strong efficiency savings, maintained confidence in its disposal and full-year targets, and described clear progress on its five-year plan and Accelerating Growth Plan. The main challenges were industry-wide cost increases, lower food and beverage sales following restaurant closures, near-term AGP and lease-cost phasing, elevated gilt rates, U.K. ROCE still below the 15% hurdle, and the ongoing Corvex dispute.Positive Updates
Strong U.K. First-Half Trading and EBITDA Growth
U.K. accommodation sales increased 3% versus last year, with Whitbread increasing its outperformance versus the market. U.K. operating costs were flat despite industry-wide inflationary pressures, including the unexpected business-rates increase, supported by GBP 39 million of efficiencies and Accelerating Growth Plan-related cost reductions. U.K. EBITDA increased 1%.
Negative Updates
U.K. Food and Beverage Sales Declined
U.K. food and beverage sales were down 37% in the first five weeks, in line with expectations following the closure of all remaining branded restaurants in September.
Read all updates
Q2-2027 Updates
Positive
Negative
Strong U.K. First-Half Trading and EBITDA Growth
U.K. accommodation sales increased 3% versus last year, with Whitbread increasing its outperformance versus the market. U.K. operating costs were flat despite industry-wide inflationary pressures, including the unexpected business-rates increase, supported by GBP 39 million of efficiencies and Accelerating Growth Plan-related cost reductions. U.K. EBITDA increased 1%.
Read all positive updates
Company Guidance
Whitbread expects GBP 60 million of efficiencies for the full year, against GBP 250 million worth of efficiencies over the next 5 years, and remains confident in delivering GBP 450 million to GBP 500 million of disposal proceeds for the full year; its 5-year plan targets at least 15% returns on all growth investment, a 500 basis point increase in returns, GBP 2 billion of cash flow available for shareholders by FY '31, 96,000 rooms in the U.K. including 1,000 underlying rooms plus 750 rooms for the Accelerating Growth Plan this year and about 1,500 room exits, and 18,000 rooms in Germany by the end of full year '31, with GBP 200 million of Germany growth capital remaining, GBP 100 million of which will be spent this year and GBP 100 million over the remaining 4 years; the company is fully hedged this year and well hedged next year, expects GBP 40 million of year-on-year efficiency savings in the first half and GBP 20 million in the second half, expects to see a lot of the AGP impact in Q3 and the cost coming out in Q4, and said lease costs will be more back-end weighted right at the end of the year.Whitbread Financial Statement Overview
Summary
Income Statement
71
Positive
Balance Sheet
58
Neutral
Cash Flow
52
Neutral
| Breakdown | TTM | Feb 2026 | Feb 2025 | Feb 2024 | Feb 2023 | Feb 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.95B | 2.92B | 2.92B | 2.96B | 2.63B | 1.70B |
| Gross Profit | 1.50B | 1.48B | 1.88B | 1.17B | 1.27B | 551.00M |
| EBITDA | 1.05B | 1.05B | 957.00M | 1.01B | 883.70M | 554.40M |
| Net Income | 57.70M | 212.90M | 253.70M | 312.10M | 278.80M | 42.50M |
Balance Sheet | ||||||
| Total Assets | 9.66B | 9.57B | 9.90B | 9.52B | 9.94B | 9.57B |
| Cash, Cash Equivalents and Short-Term Investments | 275.40M | 233.70M | 909.00M | 696.70M | 1.16B | 1.13B |
| Total Debt | 5.54B | 5.47B | 5.63B | 5.09B | 4.95B | 4.69B |
| Total Liabilities | 6.57B | 6.43B | 6.57B | 6.00B | 5.83B | 5.45B |
| Stockholders Equity | 3.09B | 3.14B | 3.33B | 3.52B | 4.11B | 4.12B |
Cash Flow | ||||||
| Free Cash Flow | 145.60M | 98.50M | 263.50M | 369.40M | 276.90M | 289.20M |
| Operating Cash Flow | 752.10M | 754.20M | 761.70M | 877.90M | 795.70M | 510.70M |
| Investing Cash Flow | -411.30M | -384.30M | -362.40M | -443.90M | -486.00M | -204.60M |
| Financing Cash Flow | -965.00M | -1.05B | -186.10M | -901.00M | -279.20M | -429.10M |
Whitbread Technical Analysis
Positive
2493.00
Price Trends
2441.82
Positive
2433.81
Positive
2438.81
Positive
Market Momentum
55.53
Negative
60.48
Neutral
54.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:WTB, the sentiment is Positive. The current price of 2493 is below the 20-day moving average (MA) of 2533.45, above the 50-day MA of 2441.82, and above the 200-day MA of 2438.81, indicating a bullish trend. The MACD of 55.53 indicates Negative momentum. The RSI at 60.48 is Neutral, neither overbought nor oversold. The STOCH value of 54.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:WTB.
Whitbread Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | £1.87B | 10.16 | 6.41% | 2.89% | 2.96% | 9.30% | |
68 Neutral | £4.59B | 79.10 | 1.85% | 3.54% | 1.99% | -75.93% | |
64 Neutral | £366.17M | 5.01 | 9.30% | 6.05% | -0.52% | 68.53% | |
62 Neutral | $24.40B | 35.25 | -25.04% | 1.13% | 4.08% | -0.62% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | £1.01B | 18.16 | 17.99% | 1.16% | 5.19% | -3.45% | |
55 Neutral | £635.91M | 4.13 | 40.35% | 2.57% | 5.33% | 602.34% |
* Consumer Cyclical Sector Average
GB:WTB
Whitbread
2,737.00
-197.42
-6.73%
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26.00%
GB:JDW
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GB:PPH
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Whitbread Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Whitbread Urges Shareholders to Reject Corvex-Backed Board Appointment
Neutral
Oct 13, 2026
Whitbread PLC has published a shareholder circular and notice of a general meeting, called at the request of activist investor Corvex Management, to vote on appointing a Corvex-selected director to the company’s board. The board is unanimous...
Business Operations and StrategyDividendsFinancial DisclosuresShareholder Meetings
Whitbread doubles down on pure-play hotel strategy as profits dip on transition costs
Positive
Oct 13, 2026
Whitbread reported modest revenue growth but lower statutory profit in the first half of FY27, as strong accommodation sales in the UK, Ireland and Germany were offset by transition costs tied to its Accelerating Growth Plan and inflationary press...
Business Operations and StrategyRegulatory Filings and Compliance
Whitbread Confirms Current Voting Rights and Share Capital Structure
Neutral
Oct 1, 2026
Whitbread PLC has reported that, as of the close of business on 30 September 2026, it had 180,196,253 ordinary shares in issue, with 12,454,718 of those shares held in treasury. This leaves a total of 167,741,535 voting rights attached to its ordi...
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Whitbread Launches £1.5bn Euro Medium Term Note Programme
Positive
Sep 22, 2026
Whitbread Group PLC has established a £1.5 billion Euro Medium Term Note Programme, guaranteed by Whitbread PLC and Premier Inn Hotels Limited, with a base prospectus approved by the Financial Conduct Authority. The programme is intended for ...
Regulatory Filings and Compliance
Whitbread Updates Market on Share Capital and Voting Rights Structure
Neutral
Sep 1, 2026
Whitbread PLC has disclosed that, as of 28 August 2026, it had 180,196,253 ordinary shares in issue, of which 12,454,718 were held in treasury, leaving 167,741,535 shares carrying voting rights. The company confirmed that this voting rights figure...
Regulatory Filings and Compliance
Whitbread Director Shelley Roberts Adds to Shareholding
Positive
Aug 12, 2026
Whitbread PLC has disclosed that independent non-executive director Shelley Roberts purchased 485 ordinary shares in the company on 11 August 2026 in London, U.K. The transaction, worth £11,910.63 at a price of £24.558 per share, was rep...
Regulatory Filings and Compliance
Whitbread Discloses Share Sale by Associate of Senior Executive
Neutral
Aug 3, 2026
Whitbread PLC has disclosed a share transaction involving a person closely associated with senior management, as required under market regulations. The notification relates to Sarah Anderson, who is identified as being closely associated with Mark...
Regulatory Filings and Compliance
Whitbread updates market on share capital and voting rights
Neutral
Aug 3, 2026
Whitbread PLC has confirmed that as of 31 July 2026 it had 180,196,253 ordinary shares in issue, of which 12,454,718 were held in treasury, leaving 167,741,535 shares carrying voting rights. The disclosure, made under FCA transparency rules, provi...
Regulatory Filings and Compliance
Whitbread Discloses Share Sales by U.K. Hotels Managing Director and Associate
Neutral
Jul 29, 2026
Whitbread has disclosed share dealings by senior management in line with U.K. market transparency rules. The transactions involve ordinary shares in the hospitality group and reflect routine reporting of dealings by individuals with managerial res...
Business Operations and StrategyExecutive/Board Changes
Whitbread Strengthens Board with Property Veteran Mark Allan
Positive
Jul 23, 2026
Whitbread PLC has appointed Mark Allan as an Independent Non-Executive Director, effective 1 October 2026, with roles on the Audit and Nomination Committees. Allan, currently CEO of Land Securities Group PLC and formerly CEO of St. Modwen Properti...
Business Operations and StrategyExecutive/Board Changes
Whitbread Director Kal Atwal Takes Non-Executive Role at Quilter
Positive
Jul 21, 2026
Whitbread PLC has disclosed that board member Kal Atwal will take on an external governance role at Quilter plc as an independent non-executive director from 1 September 2026. Atwal will also join Quilter’s Remuneration Committee, reinforcin...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.