Whitbread plc (OTCPK:WTBCF) Q1 2026 Trading Update Call June 19, 2025 3:00 AM ET Company Participants Dominic J. Paul - CEO & Director Hemantkumar Kiribhai Patel - CFO & Director Conference Call Participants Alex Brignall - Redburn (Europe) Limited, Research Division Estelle Weingrod - JPMorgan Chase & Co, Research Division Jaina Mistry - Jefferies LLC, Research Division Jamie David William Rollo - Morgan Stanley, Research Division Jarrod Castle - UBS Investment Bank, Research Division Richard J. Clarke - S ...

Core Insights - Whitbread shares have declined by 20% over the past year, indicating significant weakness in the stock performance [1] Group 1: Company Performance - The stock has experienced a lackluster reaction from the market, contributing to its recent decline [1] Group 2: Investment Strategy - The focus is on identifying undervalued companies with strong fundamentals and growth potential, emphasizing robust cash flows, strong balance sheets, and competent management [1]

Core Insights - The article emphasizes the expertise of the company in analyzing restaurant stocks across various segments in the U.S. market, including QSR, fast casual, casual dining, fine dining, and family dining [1] Group 1: Company Overview - The company is led by a founder with a strong background in Business Administration and Accounting, holding an MBA in Forensic Accounting and Controllership [1] - The company utilizes advanced analytical models and specialized valuation techniques to provide detailed insights and actionable strategies for investors [1] Group 2: Industry Engagement - The company actively participates in academic and journalistic initiatives, contributing to institutions that promote individual and economic freedom [1] - Previous contributions include columns discussing monetary policy, financial education, and financial modeling, aimed at making these topics accessible to a broader audience [1]

Financial Data and Key Metrics Changes - In the first quarter, group total sales were 1% ahead of last year, driven by strong performance in the UK and Germany [10] - Total UK accommodation sales were up 55% compared to pre-pandemic levels, indicating a favorable supply backdrop [11] - The company maintains a healthy RevPAR premium of £5.62, outperforming the mid-scale and economy sector [19] Business Line Data and Key Metrics Changes - The UK business is expected to continue its market-leading position through a strong commercial program and an accelerated growth plan [18] - In Germany, total accommodation sales increased by 15% compared to last year, supported by the maturity of the estate and room growth [19] - The company is adding over 3,500 rooms to its UK estate, while also focusing on becoming the number one hotel brand in Germany [18] Market Data and Key Metrics Changes - The company is experiencing a combination of overs and unders in the UK market, with some uncertainty due to the election process [7] - Business demand remains resilient, with peak leisure demand also showing strength, although there is some softness in the soft peak leisure segment [35] - The company is confident in its ability to outperform competitors due to structural reasons in the market [29] Company Strategy and Development Direction - The company is focused on executing various strategic initiatives to drive business performance over the next few years [17] - There is a strong emphasis on cost efficiency and digital agility, with the largest ever cost efficiency program being implemented [18] - The company aims to leverage its upgraded technology stack to enhance operational performance and drive growth [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the full-year outlook, citing a positive forward booked position and strong commercial programs [12] - The company is optimistic about the levers available to drive performance, particularly in the German market, which is transitioning from a financial headwind to a tailwind [30] - Management noted that the upcoming events, such as the Euros and Taylor Swift concerts, are expected to provide a boost to performance [67] Other Important Information - The company has a pipeline of over 7,000 rooms, with a target of opening between 750 to 1,250 rooms this year [54] - The efficiency program is expected to yield significant improvements in the second half of the year compared to the first half [59] - The company is above the national living wage and has implemented a strong pay increase for its employees [75] Q&A Session Summary Question: How should the outlook be interpreted given the positive forward position? - Management feels encouraged and believes the quarter will likely strengthen, with various levers available to drive performance [23][24] Question: What are the expectations for RevPAR in the UK? - Management believes achieving the consensus of around 1% for the full year is feasible, supported by efficiency initiatives [27][28] Question: What conditions are needed for profitability in Germany by FY 2026? - Management refrained from speculating but emphasized the importance of RevPAR increases and refining the operating model [33][60] Question: How is the company managing booking processes for peak summer months? - The company is leveraging historical data to optimize pricing and booking strategies [66] Question: What impact will upcoming events have on Q2 performance? - Management anticipates material benefits from events like the Euros and Taylor Swift concerts, contributing positively to performance [67][68]

Financial Data and Key Metrics Changes - The company reported its highest level of profits and cash flow since focusing on the hotel group, with significant profit and margin increases compared to the previous year [5] - The UK business achieved a record return on capital of 15.5% [5] - The company declared an increased final dividend and a £150 million share buyback, bringing total cash returns to shareholders since April 2023 to over £1 billion [12] Business Line Data and Key Metrics Changes - The UK hotels outperformed the mid-scale and economy sector, driving strong revenue growth [5] - In Germany, the company added over 1,400 rooms and reduced losses, indicating improved trading performance [6] - The UK plans to grow its room pipeline by 50% over the next five years, increasing the total to over 97,000 rooms [7] Market Data and Key Metrics Changes - The UK market showed slight softness in early FY 2025, but the company continued to outperform the market, with a forward booked position ahead of the previous year [9] - In Germany, the company is on track to break even on a run rate basis this year, with a target return on capital of 10% to 14% [10] Company Strategy and Development Direction - The company is optimizing its food and beverage offerings to replace loss-making restaurants with higher-returning hotel rooms, aiming to increase market share and profitability [8] - The company launched its largest cost efficiency program to drive savings and support margin growth [11] - The accelerating growth plan is designed to take advantage of the structural decline in hotel supply in the UK [41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to outperform the market due to strong brand health and value-for-money scores [18] - The company noted that while the first few weeks of FY 2025 were softer, the overall demand is expected to strengthen as the year progresses [47] - Management highlighted that the reduction in hotel supply will provide a strong underpin for the hotel market over the next few years [46] Other Important Information - The company is focused on building brand awareness in Germany and refining trading strategies to enhance performance [10] - The management emphasized the importance of maintaining a strong balance sheet and capital allocation framework to support growth and shareholder returns [23] Q&A Session Summary Question: RevPAR performance and confidence in future outperformance - Management reiterated confidence in driving returns up over the next few years through announced plans and commercial levers [16][18] Question: Cash returns and share buyback strategy - The company explained that the £150 million share buyback aligns with its capital allocation framework and will be reassessed at half-year results [20][24] Question: Profitability of retained pub restaurants - Management indicated that the retained restaurants are generally larger and perform better than those being sold, ensuring a better guest experience [33] Question: Room growth in Germany and pipeline concerns - Management acknowledged slower room openings but emphasized a strong pipeline and focus on driving increased returns rather than chasing growth for its own sake [36][37] Question: UK openings and market conditions - The company noted that the current pipeline is lower due to COVID-related delays but expects to profitably extend market share as competitors struggle to grow [41][42] Question: Cost efficiencies and inflation impact - Management outlined a £150 million efficiency program aimed at offsetting inflation and potentially achieving low net inflation in the coming years [87][88] Question: Leverage and capital allocation - Management confirmed a leverage ceiling of 3.5 times EBITDA, emphasizing the importance of maintaining investment-grade status while allowing for growth opportunities [70][73]

WHITBREAD PLC on our advantage Premier Inn 5 FY24 RESULTS 30 APRIL 2024 This document has been marked as Non-Confidential CONTENTS | --- | --- | --- | --- | --- | --- | |------------------------------|-------|-------|-------|-------|----------------| | | | | | | | | | | | | | | | HIGHLIGHTS | | | | | MARYLEBONE HUB | | | | | | | | | FINANCIAL REVIEW | | | | | | | STRATEGY UPDATE | | | | | | | CAPITAL ALLOCATION & OUTLOOK | | | | | | | CONCLUSION | | | | | | WHITBREAD 2 n in the same Premier Inn ** Rest easy ...

About this content About Ian Lyall Ian Lyall, a seasoned journalist and editor, brings over three decades of experience to his role as Managing Editor at Proactive. Overseeing Proactive's editorial and broadcast operations across six offices on three continents, Ian is responsible for quality control, editorial policy, and content production. He directs the creation of 50,000 pieces of real-time news, feature articles, and filmed interviews annually. Prior to Proactive, Ian helped lead the business outpu ...

Shore Capital Markets has maintained a generally positive outlook on Premier Inn parent Whitbread PLC (LSE:WTB) despite recent underperformance and projections of a downturn in RevPAR (Revenue Per Available Room). Analysts said Whitbread's financial forecasts suggest a trajectory of growth, with anticipated improvements in revenue, EBITDA, and adjusted profit before tax over the next few years. “We maintain our BUY stance on Whitbread with the forthcoming preliminary results at the end of April set to provi ...

Premier Inn owner Whitbread PLC (LSE:WTB) can be a “recession winner” according to analysts at Jefferies which has a ‘Buy’ rating for the hospitality stock. The broker, in a note, highlighted Whitbread’s strategic focus on expansion and optimisation, with an eye on enhancing returns and deepening its economic ‘moat’, particularly in the UK and Germany. "Whitbread is a recession winner with its budget price point, industry-leading price sophistication, beneficial supply conditions, and £750m of cash firepowe ...

FTSE 100-listed owner of Premier Inn Whitbread PLC (LSE:WTB) copped an upgrade after exhibiting robust performance in its third quarter, as highlighted in a recent broker note from Liberum. Premier Inn significantly outperformed the competition with its fully integrated model, said analysts, as evidenced by the 9% year-over-year increase in revenues per available room. Whitbread’s sales saw a significant uptick, with group-wide sales in the third quarter growing by 11% year- over-year and UK accommodation s ...