- Whitbread
- 19 June 2025 11:52:50
Source: Sharecast
Whitbread shares were lower on Thursday after the company reported challenging conditions in the UK in its first quarter ended 29 May, with revenue per available room down 2% due to a softer performance in London (-2.4%), and food and beverage sales 16% lower than last year.
However, according to Shore Capital analyst Greg Johnson, the company's German operations remain the "bright spot" with RevPAR up 12% during the period, and food and beverage sales up 22%.
Johnson estimates a 1% fall in RevPAR across the business overall over the full fiscal year, and said: "Q1 trends are tracking modestly behind this in the UK, we are minded maintaining our full year estimates, especially noting the positive momentum in Germany."
After a recent rally in the share price, Whitbread now trades at 14 times full-year earnings and an EV/EBITDA multiple of eight (excluding leases), Johnson said.
"Management have set out a roadmap to add over £300m to the bottom line and return of £1bn of cash in the medium term, which on our estimates could increase EPS to comfortably above 300p. This opportunity is yet to reflected in the share price, although a return to UK RevPAR growth is the likely key catalyst to a rerating."
The stock was down 0.7% at 2,770p by 1150 BST.