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Solid but expensive Whitbread

Whitbread is due to report solid half-year numbers, but investors can afford to wait for a cheaper entry point.
October 15, 2014

If the pre-close statement is any indication, half-year numbers from hotel and restaurant giant Whitbread (WTB) should be good. Back in September, management revealed second-quarter sales growth of 12.7 per cent, based on like-for-like growth of nearly 7 per cent.

IC TIP: Hold at 4,039p

Premier Inn and Costa Coffee are still the star performers. Like-for-like sales at the budget hotel chain rocketed 9 per cent in the second quarter, and the high-street coffee chain wasn't far behind with 7 per cent underlying growth. Management says both brands are winning market share, and Premier Inn is benefiting from "a buoyant hotel market in the UK." Costa Coffee numbers have also been aided by weak comparative figures.

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