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Whitbread reports growth despite challenging trading conditions
- Whitbread sales increase by 12.9%
- Costa Coffee and Premier Inn brands drive positive figures
- The Share Centre continues to recommend investors ‘hold’ Whitbread
As Whitbread reports positive Q2 figures Graham Spooner, investment adviser at The Share Centre, explains what this means for investors.
“The hotel and restaurant group reported revenue growth for the 11 week period to 18 August as sales increased by 12.9% compared to the previous year. Costa Coffee’s sales for the period were up by 28.8% and Premier Inn sales rose by 12.5% – this strong performance is impressive in the current economic climate.
“However, the impact of the on-going pressures on consumer budgets did take its toll on Whitbread’s restaurant sales which increased just 0.7%. Although this was offset by the stronger brands, the economic environment remains challenging and is showing no signs of improvement.
“By the end of the year the company plans to have increased the number of Premier Inns by 9% and Costa Coffees by 15% as part of its aggressive five year strategy that will please growth seeking investors. However, these plans are ambitious in the current economic conditions.
“Whitbread was the biggest riser on the FTSE 100 this morning following the release of positive Q2 figures, but with so much uncertainty in the economy we continue to recommend investors ‘hold’ Whitbread for now.”
Watch Whitbread Share Price
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THIS DATA IS PROVIDED BY NICK RAYNOR, INVESTMENT ADVISER AT THE SHARE CENTRE. THIS IS NOT INTENDED TO CONSTITUTE AN OFFER OR AGREEMENT TO BUY OR SELL INVESTMENTS.
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Back2011-09-06 17:40:01 © Moneyextra.com