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Whitbread
(LSE:WTB)
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Rating:58Neutral
Price Target:
2,628.00 p
▲(2.86% Upside)
Action:Reiterated
Date:05/06/26
The score is anchored by mixed fundamentals: solid operating profitability and positive operating cash flow, but pressured by elevated leverage and sharply weaker free cash flow. Technicals materially detract due to a clear downtrend (price below key moving averages and negative MACD). Offsetting some of this, the earnings call outlined credible medium-term value levers (efficiencies, ROCE improvement, property recycling and long-term FCF targets) and the dividend yield is supportive, though near-term headwinds and a negative P/E temper the valuation signal.
Positive Factors
Operating profitability and margins
Consistent ~19–21% operating margins across 2023–2026 show durable cost control and pricing power in the Premier Inn model. High operating margins for a lodging operator mean core cash generation is structural, supporting reinvestment, ROCE improvement and shareholder returns over the medium term.
Negative Factors
Elevated leverage and reduced equity
A relatively high debt load and falling equity weaken financial flexibility. For a capital‑intensive hotel operator this raises refinancing and interest‑rate risk, limits capacity to accelerate investment or absorb shocks, and makes delivery of long‑term targets more sensitive to execution and market yields.
Read all positive and negative factors
Positive Factors
Negative Factors
Operating profitability and margins
Consistent ~19–21% operating margins across 2023–2026 show durable cost control and pricing power in the Premier Inn model. High operating margins for a lodging operator mean core cash generation is structural, supporting reinvestment, ROCE improvement and shareholder returns over the medium term.
Read all positive factors
Whitbread (WTB) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£3.89B
Dividend Yield3.8%
Average Volume (3M)515.17K
Price to Earnings (P/E)19.2
Beta (1Y)0.87
Revenue Growth-0.06%
EPS Growth-13.45%
CountryUK
Employees31,502
SectorConsumer Cyclical
Sector Strength84
IndustryTravel Lodging
Share Statistics
EPS (TTM)1.22
Shares Outstanding167,741,530
10 Day Avg. Volume728,477
30 Day Avg. Volume515,166
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
£2,659.44Price Target Upside4.09% Upside
Rating ConsensusHold
Number of Analyst Covering10
EPS Forecast (FY)1.73
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 primarily by selling hotel room nights through its Premier Inn estate in the UK and its growing Premier Inn business in Germany. Its core revenue stream is accommodation revenue (daily room rates multiplied by occupancy acros...
Whitbread Earnings Call Summary
Earnings Call Date:Apr 30, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Oct 21, 2026
Earnings Call Sentiment Positive
The call presented a broadly constructive picture: operational outperformance in the U.K., Germany reaching profitability, strong cash generation, substantial progress on a high-return Accelerating Growth Plan and an enlarged efficiency program. Management acknowledged near-term headwinds (business rates, labor inflation, AGP transition effects and increased lease obligations from recycling) but set out concrete mitigations and medium-term targets (GBP 275m incremental PBT from initiatives, GBP 250m efficiencies, GBP 1.5bn property recycling, 500bps ROCE improvement and GBP 2bn free cash flow by FY'31). Given the balance of many quantitative improvements and clear medium-term value creation levers versus manageable and disclosed short-term pains, the overall tone of the call is positive.Positive Updates
EBITDA Growth and Strong Operating Cash Flow
Group EBITDA increased 4% to GBP 1.1bn, supported by adjusted operating cash flow of over GBP 700m.
Negative Updates
Flat Group Revenues and Adjusted Profit Before Tax
Group revenues were flat year-on-year and adjusted profit before tax was flat at GBP 483m, reflecting offsetting dynamics (U.K. accommodation recovery vs lower F&B and inflationary pressures).
Read all updates
Q4-2026 Updates
Positive
Negative
EBITDA Growth and Strong Operating Cash Flow
Group EBITDA increased 4% to GBP 1.1bn, supported by adjusted operating cash flow of over GBP 700m.
Read all positive updates
Company Guidance
Whitbread guided that in FY27 it expects to open ~1,000 UK rooms plus ~750 AGP extension rooms and c.2,300 rooms in Germany, with net CapEx of £200–300m funded by recycling c.£450–500m of freehold property this year; the AGP extension will cause a c.£40m PBT hit in FY27 (net FY27 PBT down ~£10m) but is projected to deliver c.£30–40m incremental PBT in FY28 and ~£100m by Feb‑31. Under the new 5‑year plan the group targets £275m incremental PBT by Feb‑31 (AGP, UK high‑return projects and Germany), £250m cumulative efficiencies (FY27–31), a reduction in gross CapEx from £3.5bn to £2.5bn, recycling £1.5bn of freeholds, cutting net annual CapEx to £200–250m p.a., increasing group ROCE by 500bps and generating £2bn free cash flow for shareholders by FY31; Germany is expected to reach ~18,000 rooms, turn cash‑flow positive by FY29 and deliver double‑digit returns and c.£65m incremental adjusted profit by FY31. Current leverage remains within the investment‑grade threshold (lease‑adjusted leverage 3.3% vs 3.5x limit); FY26 metrics referenced include EBITDA £1.1bn, adjusted PBT £483m, net debt £709m, occupancy 79%, ARR £82, a UK RevPAR premium c.£6–7 and £419m returned to shareholders.Whitbread Financial Statement Overview
Summary
Income Statement
71
Positive
Balance Sheet
58
Neutral
Cash Flow
52
Neutral
| Breakdown | Feb 2026 | Feb 2025 | Feb 2024 | Feb 2023 | Feb 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.92B | 2.92B | 2.96B | 2.63B | 1.70B |
| Gross Profit | 1.48B | 1.88B | 1.17B | 1.27B | 551.00M |
| EBITDA | 1.05B | 957.00M | 1.01B | 883.70M | 554.40M |
| Net Income | 212.90M | 253.70M | 312.10M | 278.80M | 42.50M |
Balance Sheet | |||||
| Total Assets | 9.57B | 9.90B | 9.52B | 9.94B | 9.57B |
| Cash, Cash Equivalents and Short-Term Investments | 233.70M | 909.00M | 696.70M | 1.16B | 1.13B |
| Total Debt | 5.47B | 5.63B | 5.09B | 4.95B | 4.69B |
| Total Liabilities | 6.43B | 6.57B | 6.00B | 5.83B | 5.45B |
| Stockholders Equity | 3.14B | 3.33B | 3.52B | 4.11B | 4.12B |
Cash Flow | |||||
| Free Cash Flow | 98.50M | 263.50M | 369.40M | 276.90M | 289.20M |
| Operating Cash Flow | 754.20M | 761.70M | 877.90M | 795.70M | 510.70M |
| Investing Cash Flow | -384.30M | -362.40M | -443.90M | -486.00M | -204.60M |
| Financing Cash Flow | -1.05B | -186.10M | -901.00M | -279.20M | -429.10M |
Whitbread Technical Analysis
Negative
2555.00
Price Trends
2350.65
Negative
2378.22
Negative
2543.52
Negative
Market Momentum
-9.69
Positive
43.85
Neutral
11.21
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:WTB, the sentiment is Negative. The current price of 2555 is above the 20-day moving average (MA) of 2405.55, above the 50-day MA of 2350.65, and above the 200-day MA of 2543.52, indicating a bearish trend. The MACD of -9.69 indicates Positive momentum. The RSI at 43.85 is Neutral, neither overbought nor oversold. The STOCH value of 11.21 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 | $24.44B | 40.32 | -23.50% | 1.23% | 5.40% | 26.02% | |
69 Neutral | £725.38M | 14.31 | 15.81% | 1.50% | 5.39% | -3.64% | |
65 Neutral | £1.56B | 8.48 | 6.41% | ― | 2.96% | 9.30% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | £3.89B | 19.16 | 6.73% | 3.80% | -0.06% | -13.45% | |
58 Neutral | £342.43M | 4.72 | 9.30% | ― | -0.52% | 68.53% | |
54 Neutral | £678.95M | 46.99 | 4.65% | 1.84% | 5.33% | -53.26% |
* Consumer Cyclical Sector Average
GB:WTB
Whitbread
2,330.00
-614.05
-20.86%
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Whitbread Corporate Events
Business Operations and StrategyStock BuybackDividendsShareholder Meetings
Whitbread Wins Shareholder Backing for All AGM Resolutions
Positive
Jun 18, 2026
Whitbread PLC reported that shareholders approved all resolutions at its 18 June 2026 annual general meeting, confirming broad backing for the company’s strategy and governance. Investors endorsed the receipt of the latest annual report and ...
Business Operations and StrategyFinancial Disclosures
Whitbread Posts Solid Q1 as Premier Inn Outperforms in UK and Germany
Positive
Jun 18, 2026
Whitbread reported a solid start to its 2026-27 financial year, with total group sales up 2% to £727m, driven by growth in Premier Inn accommodation across the UK and Germany despite a planned decline in UK food and beverage revenue. In the U...
Financial DisclosuresRegulatory Filings and Compliance
Whitbread updates market on share capital and voting rights denominator
Neutral
Jun 1, 2026
Whitbread PLC has updated the market on its share capital and voting rights, reporting that as of 29 May 2026 it had 180,196,253 ordinary shares in issue, of which 12,454,718 are held in treasury, leaving 167,741,535 voting shares outstanding. The...
Executive/Board ChangesRegulatory Filings and Compliance
Whitbread Executives Exercise Share Awards and Disclose Equity Transactions
Neutral
May 22, 2026
Whitbread has disclosed a series of share transactions by senior executives and their spouses, reflecting the exercise of awards under the company’s restricted share plan and incentive schemes. Chief executive Dominic Paul exercised awards o...
Financial DisclosuresRegulatory Filings and ComplianceShareholder Meetings
Whitbread Files 2025/26 Annual Report and Sets June AGM Date
Neutral
May 13, 2026
Whitbread PLC has published its 2025/26 Annual Report and Accounts, along with the Notice of Annual General Meeting and Form of Proxy, making them available via the U.K. financial regulator’s National Storage Mechanism and on the companyR...
Executive/Board Changes
Whitbread Director Jonathan Howell Takes Non-Executive Role at Centrica
Positive
May 12, 2026
Whitbread PLC has announced that its director Jonathan Howell has been appointed an independent non-executive director at Centrica plc, effective 12 May 2026. He will also become Chair of Centrica’s Audit and Risk Committee and join its Nomi...
Executive/Board ChangesRegulatory Filings and Compliance
Whitbread Grants Major Share Awards to Senior Leadership
Neutral
May 11, 2026
Whitbread has granted substantial share awards to several senior executives, including Chief Executive Dominic Paul and Chief Financial Officer Hemant Patel, under its Restricted Share Plan and Whitbread Incentive Scheme. The awards, all made on 8...
Regulatory Filings and Compliance
Whitbread Director Boosts Stake with May Share Purchase
Positive
May 8, 2026
Whitbread PLC has reported a share purchase by independent non-executive director Shelley Roberts, who acquired 1,290 ordinary shares at a price of £23.09 per share in a transaction on 8 May 2026 in London. The disclosure, made under market a...
Stock BuybackRegulatory Filings and Compliance
Whitbread Updates Market on Share Capital and Voting Rights
Neutral
May 1, 2026
Whitbread PLC has confirmed that, as of the close of business on 30 April 2026, it had 180,196,253 ordinary shares in issue, with 12,454,718 of those held in treasury, resulting in 167,741,535 voting rights. The updated share and voting-rights tot...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Whitbread Unveils Five-Year Plan to Boost Returns and Unlock £2bn in Free Cash Flow
Positive
Apr 30, 2026
Whitbread has launched a new five-year plan to FY31 that aims to turn the group into a higher-margin, higher-return pure-play hotel operator, centred on Premier Inn in the UK and Germany. Responding to rising costs such as business rates and Natio...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Whitbread Holds Profits Steady and Unveils Margin-Focused Five-Year Overhaul
Positive
Apr 30, 2026
Whitbread reported flat statutory revenue of £2.92bn for FY26, with adjusted profit before tax steady at £483m, as robust accommodation sales in the UK and Germany and a sharp turnaround to profitability in Premier Inn Germany offset wea...
Regulatory Filings and Compliance
Whitbread Updates Share Capital and Voting Rights Total
Neutral
Apr 1, 2026
Whitbread PLC has confirmed that, as of the close of business on 31 March 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. This updated voting-rights f...
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.