Buy26 Jan 2017 17:36
Whitbread's release underlined the improving popularity of Costa Coffee. Total sales at the unit soared 12.5% during the quarter -- a result that was attributed to the success of recent marketing campaigns -- and on an underlying basis revenues climbed 4.3%.
And Whitbread is embarking on aggressive expansion to keep sales rising across the business. The company has a pipeline of some 14,000 new Premier Inn rooms in the UK alone. And expansion at Costa Coffee will see between 230 and 250 net new shops, and at least 1,500 Costa Express machines, unveiled worldwide.
The City certainly expects Whitbread's long-running growth story to continue, and anticipates a 1% bottom-line rise in the period to February 2017, to be followed by a 6% advance in fiscal 2018.
I reckon a consequent P/E ratio of 15.2 times for next year is great value, given Whitbread's exciting growth strategy and roaring success with consumers across the globe.