Whitbread shares increased around 3.3% yesterday following the company reporting like-for-like sales (LFLs) growth of 3.6% for the six months to August 27.
Whitbread’s shares closed the day at to 4883.00p, up from its high the day before of 4729.00p.
Revealing its half year results, Whitbread said a focus on the Premier Inn and Costa Coffee brands helped it achieve strong growth, with Costa Coffee’s LFLs growing 4.4%. Investment in organic growth is set to continue, according to outgoing chief executive Andy Harrison, with plans to invest £700m including the additions of 220 net new Costa stores worldwide.
City analyst Numis suggested the impact of the National Living Wage may cost Whitbread up to £10m in its next financial year. Plus, it warned the company was to face a £25.2m exceptional charge for the disposal of onerous leases.
But, these costs did not stop Numis from suggesting Whitbread share prices could reach 5600p and promoted its stock with an add recommendation.