The buyers pressure is likely to reborn on Whitbread as a double bottom is taking shape.
The British chain of hotels, restaurants and coffee shops benefits from outstanding financial statements. Sales volume of its Costa Coffee unit increased on last year. Revenues of the company come mainly from the UK economy as it represents 96% of its total sales. Moreover, the group already opened dozens of stores in France and plans to continue expanding through Europe. An EBITDA of GBP 643 million is expected by the end of fiscal 2015 and a lower leverage of 0.66x. Yields should continue to grow year over year at an average pace of 11% in a three-year horizon.
The coffee culture seems to boost profits; this gathering process could mean the necessary push for shares to draw off a double bottom in further trading sessions. This technical pattern will be supported by the GBp 3846 support line and the rebound is expected to be powerful as it should drive stock prices toward the GBp 4301 resistance in first place and then approaching the GBp 4487 midterm resistance. In addition, the 20-week moving average provides support to the security, prompting a higher push.
Investors could take long positions at actual prices on Whitbread as the GBp 4301 is expected to be reached. However, a stop loss could be triggered if the equity comes down the short term support.
Whitbread PLC is a leading British hotel, restaurant, and coffee shops. Net sales break down by activity as follows:
- hotel operations (72.2%; No. 1 in the United Kingdom): owns, as of 02/03/2023, 898 hotels under the Premier Inn brand, mainly located in the United Kingdom (847; 83,500 rooms) and Germany (51; 9,000 rooms) ;
- operation of restaurants (27.8%): owns 800 restaurants and pubs under the Premier Inn, Beefeater, Brewers Fayre, Table Table, Cookhouse & Pub, Bar+Block and Thyme brands;
- other (0.4%).
Net sales are distributed geographically as follows: the United Kingdom and Ireland (94.8%), Germany (4.5%) and other (0.7%).
WHITBREAD PLC 
