WTB LN

Whitbread PLC

Consumer


Presented:10/27/2015
Price:£49.01
Cap:$13.78B
Current Price:£30.72
Cap:$8.43B

Presented

Date10/27/2015
Price£49.01
Market Cap$13.78B
Ent Value$14.55B
P/E Ratio23.58x
Book Value£11.65
Div Yield1.55%
Shares O/S183.00M
Ave Daily Vol545,547
Short IntN/A

Current

Price£30.72
Market Cap$8.43B
Whitbread Plc operates a chain of hotels, restaurants and coffee shops. The company is organized into two strategic business units: Hotels & Restaurants and Costa. The Hotels & Restaurants unit provides services in relation to accommodation and food. The Costa unit is engaged in the operations of its branded, owned and franchised coffee shops. Its brands include Premier Inn, Beefeater, Table Table, Brewers Fayre, Taybarns and Costa Coffee. Whitbread was founded by Samuel Whitbread in 1742 and is headquartered in Dunstable, the United Kingdom.

Publicly traded companies mentioned herein: InterContinental Hotels Group (IHG), Starbucks Inc (SBUX), Whitbread PLC (WTB LN)

Highlights

The presenter is long shares of Whitbread PLC (WTB) and has monitored the company’s performance for years. He likes the overall trajectory of the business and sees a favorable risk/ reward with the stock trading at ~49 GBP*. There are tailwinds for both of its businesses, as Premier Inn (two thirds of WTB’s 8.5 billion of earnings) may soon have pricing power; and Costa Coffee (the leading retail coffee company in the UK) has one of the best track records he has ever seen. A sum-of-the-parts model suggests 70 GBP is a more fair value for the stock, and the presenter sees shares trending up to this level over the next 12 - 24 months. (*Please note, all figures are in GBP unless otherwise specified.)

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Idea Discussion

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