Whitbread WTB.L
Whitbread is a British hospitality company that operates the Premier Inn hotel chain and restaurants such as Beefeater and Brewers Fayre, focused on the budget accommodation and restaurant market in the United Kingdom. Whitbread shows fragile financial health with net debt of 6.44x EBITDA and very low free cash flow conversion, while its growth is weak and it faces regulatory and operational pressures in its restaurant business.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Whitbread is a British hospitality company that operates the Premier Inn hotel chain and restaurants such as Beefeater and Brewers Fayre, focused on the budget accommodation and restaurant market in the United Kingdom. Whitbread shows fragile financial health with net debt of 6.44x EBITDA and very low free cash flow conversion, while its growth is weak and it faces regulatory and operational pressures in its restaurant business.
Score by category
| Category | Score |
|---|---|
| Financial health | 2.8 |
| Quality / Moat | 3.1 |
| Valuation | 6.3 |
| Growth | 4.3 |
| Dividend | 3.1 |
| Momentum | 0.9 |
| Risk & Context | 7.6 |
OVERALL SCORE: 4.4/10
Context and risks
Regulatory risk from the potential tourist tax in the UK, which directly affects demand for its Premier Inn hotels. Additionally, activist pressure from Corvex adds strategic uncertainty.
News considered in the analysis
- Activist Corvex seeks Whitbread board seat over strategy concerns — El activismo de Corvex presiona por cambios estratégicos, lo que añade incertidumbre sobre la dirección futura de la compañía.
- Tourist tax plans will be ‘hugely damaging’, warn holiday firms — Un posible impuesto al turismo en el Reino Unido podría reducir la demanda de sus hoteles Premier Inn, un mercado clave para Whitbread.
- Global dining leader closing 261 restaurants, steakhouse chain — El cierre de restaurantes en el sector refleja presión en la restauración, un negocio relevante para Whitbread con marcas como Beefeater.
- Final orders for Brewers Fayre and Beefeater sites as closing dates confirmed — El cierre confirmado de sitios de Brewers Fayre y Beefeater indica una contracción operativa en su negocio de restaurantes.
- FTSE 100 Live: Shares and pound climb as Starmer resigns, banks on the rise — Noticia de mercado general sin impacto directo en los fundamentales de Whitbread.
Verdict: Hold under watch; high debt and operational and regulatory pressures suggest caution until strategy and the impact of the tourist tax are clarified.
Main risk: High leverage (Net Debt/EBITDA of 6.44) combined with a potential drop in demand due to the tourist tax and contraction in restaurants could compromise its ability to generate cash and maintain the dividend.
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