Investors recommended to ‘hold' despite Whitbread's strong position

As Whitbread updates the market with Q3 results, Sheridan Admans, investment research manager at The Share Centre, explains what they mean for investors.

"Whitbread reported Q3 results in line with expectations with sales growth up 3.3%. The group has a strong market position and the woes at Travelodge should provide some support for demand at its hotel business Premier Inn, however it has little international diversification.

"Investors will be pleased to hear Costa Coffee continues to go from strength to strength, with a further 330 stores expected to be opened worldwide and 1,300 Costa Express units opened in the full year.

"Despite Whitbread being on target to meet its growth plan and the attractiveness of its business model, we continue to recommend investors 'hold' in these challenging times as we believe the potential is currently reflected in the price."

For more information, visit share.co.uk.