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Company Description

Whitbread plc operates hotels and restaurants in the United Kingdom, Germany, and internationally.It operates approximately 841 hotels with 82,286 rooms in the United Kingdom; 10 hotels in the Middle East; and 35 hotels with 5,875 rooms in Germany under the Premier Inn, ZIP by Premier Inn, and hub by Premier Inn brands.The company also operates 439 restaurants under the Brewers Fayre, Beefeater, Whitbread Inns, Cookhouse & Pub, Bar+Block Steakhouse, Thyme, and Table Table brands in the United Kingdom.


Whitbread plc was founded in 1742 and is based in Dunstable, the United Kingdom.

Market Data

Last Price 2674
Change Percentage -0.22%
Open 2661
Previous Close 2680
Market Cap ( Millions) 4699
Volume 878400
Year High 3357
Year Low 2602
M A 50 2824.76
M A 200 2939.95

Financial Ratios

FCF Yield 6.40%
Dividend Yield 3.71%
ROE 6.83%
Debt / Equity 33.18%
Net Debt / EBIDTA 58.93%
Price To Book 1.4
Price Earnings Ratio 20.36
Price To FCF 15.62
Price To sales 1.59
EV / EBITDA 5.83

News

Business Breakdown

Expected Mid-Term Growth

Segment nΒ°1 -> Accommodation

Expected Growth : 4 %

What the company do ?

Whitbread plc's Accommodation segment offers hotel rooms and food-led pubs, operating under the Premier Inn brand, providing a comfortable stay and dining experience.

Why we expect these perspectives ?

Whitbread's Accommodation segment growth is driven by increasing demand for budget hotels, strategic expansion into new locations, and investments in digital platforms to enhance customer experience. Additionally, the company's focus on providing high-quality services, improving operational efficiency, and maintaining a strong brand reputation contribute to its growth.

Segment nΒ°2 -> Food, Beverage, and Other Items

Expected Growth : 6 %

What the company do ?

Whitbread plc's Food, Beverage, and Other Items segment includes sales from its restaurants, coffee shops, and hotels, offering a range of food, beverages, and other items to customers.

Why we expect these perspectives ?

Whitbread plc's 6% growth in Food, Beverage, and Other Items is driven by increasing demand for premium coffee and breakfast offerings, successful menu innovation, and expansion of Costa Coffee and Premier Inn outlets. Additionally, strategic pricing, effective cost management, and investments in digital capabilities have contributed to the growth.

Whitbread Plc Products

Product Range What is it ?
Premier Inn A chain of budget hotels offering comfortable and affordable accommodations for business and leisure travelers
Hub by Premier Inn A compact, stylish, and affordable hotel concept designed for urban travelers
Restaurants (Brewers Fayre, Table Table, and Cookhouse + Pub) A range of restaurants offering a variety of cuisines and dining experiences
Costa Coffee A global coffee shop chain offering a wide range of coffee and food options

Whitbread plc's Porter Forces

Whitbread plc, as a hospitality company, faces a moderate threat of substitutes. While there are alternative accommodations and dining options available, the company's strong brand presence and loyalty programs help to mitigate this threat.

Whitbread plc's customers have relatively low bargaining power due to the company's large market share and diversified portfolio of brands. This limits customers' ability to negotiate prices or demand customized services.

Whitbread plc's suppliers, such as food and beverage providers, have moderate bargaining power. While the company has some dependence on these suppliers, its large scale and diversified supply chain help to mitigate this risk.

The threat of new entrants in the hospitality industry is relatively low due to the high barriers to entry, including significant capital requirements and regulatory hurdles. Whitbread plc's established brand presence and scale also make it difficult for new entrants to gain traction.

The hospitality industry is highly competitive, with many established players vying for market share. Whitbread plc faces intense rivalry from other hotel chains, online travel agencies, and alternative accommodation providers, which can lead to pricing pressure and marketing expenditure.

Capital Structure

Value
Debt Weight 59.14%
Debt Cost 5.06%
Equity Weight 40.86%
Equity Cost 9.32%
WACC 6.80%
Leverage 144.72%

Historical Valuation

Price/Earnings Ratio

Margin Valuation

Peers Valuation

Competitors

Company Rational
NXT.L NEXT plc engages in the retail of clothing, footwear, and home products in the United Kingdom, rest of Europe, the Middle East, Asia, and internationally. The company operates through NEXT …
IHG.L InterContinental Hotels Group PLC owns, manages, franchises, and leases hotels in the Americas, Europe, Asia, the Middle East, Africa, and Greater China. The company operates hotels under the Six Senses, …
AC.PA Accor SA operates a chain of hotels. It operates through two segments, HotelServices, and Hotel Assets & Other. The company owns, operates, manages, and franchises hotels. It also provides digital …
PNDX-B.ST Pandox AB (publ) owns, operates, and leases hotel properties. The company operates through Property Management and Operator Activities segments. As of March 11, 2022, it operated 157 hotels with approximately …
RDW.L Redrow plc focuses on housebuilding activities in the United Kingdom. The company acquires land; and develops and sells residential housing properties. Redrow plc was founded in 1974 and is based …

Peers Metrics

DCF BETA

Parameters

Short Term Growth
Short term Time
Long-Term Growth
WACC
Target Price
26.74$
Current Price
26.74$
Potential
-0.00%

Expected Cash-Flows

Scoring Insights

ValueQualityYieldMomentumVolatilityGrowth
Company A-Score: 5.50Peer Group Average: 3.00Leader: 6.00

Peers Group Analysis

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