Brokers Investec have a “buy” recommendation on Whitbread shares with a target price of 1933p. They say that trading across the group is holding up remarkably well despite the state of the budget hotel market. With new standalone restaurants and pub restaurant add-ons, visibility remains high.
Conditions in the restaurant arm have been more difficult but like-for-like growth has remained positive at 0.8% and Costa Coffee has continued to perform well.
Whitbread plans to merge the head offices of its Premier Inn business, where like-for-like sales were up ahead of expectations, and it restaurants divisions. It will outsource group logistics to save £25m from 2010.
The shares closed on Friday at 1266p.
The Sunday Express 02/03/08 (Financial) page 30
