# Whitbread (WTB.LSE)

Canonical: https://gigainvestors.com/s/WTB.LSE

Analysis as of: 2026-10-16T07:37:07.668Z. Financial observations: FY1997–FY2026.

Listing currency: GBX. Reporting currency: GBP.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: GBX 2,586.00 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- 4 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 4

- Years with a net loss: 1

- Operating margin variation: 5.92×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.19×

- FY2018: 0.23×

- FY2019: 0.21×

- FY2020: 0.24×

- FY2021: -1.06×

- FY2022: 0.02×

- FY2023: 0.20×

- FY2024: 0.22×

- FY2025: 0.18×

- FY2026: 0.21×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 5.6%

- ROIC, second-lowest year: 0.3%

- Typical minus recent gross margin: -10.4 pp

- Typical gross margin (annual median): 40.2%

- Recent gross margin (lower of latest and 3-year median): 50.6%

- Years with nonpositive capital: 0

- Capital spending / revenue: 19.4%

- ROIC including acquisitions, ten-year median: -2.9%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 14.3%

- FY2018: 10.5%

- FY2019: 6.4%

- FY2020: 5.9%

- FY2021: -7.0%

- FY2022: 0.3%

- FY2023: 5.1%

- FY2024: 6.7%

- FY2025: 4.5%

- FY2026: 5.4%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: -2.26×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: GBP -2.5B

- Net income, five-year total: GBP 1.1B

- Return on incremental invested capital: 1.4%

- Working capital / revenue, annual change: -2.0 pp

- Working capital / revenue, change between three-year averages: -12.1 pp

- Working capital / revenue, final three-year average: -18.8%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 3.48×

- FY2023: -1.84×

- FY2024: -1.63×

- FY2025: -2.72×

- FY2026: -4.33×

### management: fail

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 10.5% vs 5.4%

- Per-share earnings: 2.14 to 1.43 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.8%

- Ordinary dilution, 5-year annual growth: -3.5%

- Market cap gain: GBP -2.6B

- Cumulative retained earnings: GBP -2.0B

- Diluted shares, 10-year annual growth: -0.8%

- Diluted shares, 5-year annual growth: -3.5%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: -4.9%

- Per-share value change: GBP -0.71

- Per-share value, starting three-year median: GBP 2.14

- Per-share value, ending three-year median: GBP 1.43

- Buybacks concentrated in cheaper years (correlation): 0.14

- Average buyback yield: 9.6%

- Buyback history: 6 years

- Debt-funded buybacks: Yes

- Acquisition spending: GBP 171M

- Cumulative net income, 10 years: GBP 1.4B

- ROIC, first three-year median: 10.5%

- ROIC, last three-year median: 5.4%

Chart: Earnings per share; fiscal year observations.

- FY2017: GBP 2.30

- FY2018: GBP 1.87

- FY2019: GBP 0.92

- FY2020: GBP 1.25

- FY2021: GBP -4.49

- FY2022: GBP 0.21

- FY2023: GBP 1.39

- FY2024: GBP 1.70

- FY2025: GBP 1.43

- FY2026: GBP 1.26

### accounting: pass

- Sloan accruals: -5.7%

- Receivables to sales index (DSRI): 1.08×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 2.2%

- Earnings backed by cash: Yes

- Operating cash / earnings: 3.54×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.05×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -4.4%

- FY2018: -5.6%

- FY2019: -4.2%

- FY2020: -0.2%

- FY2021: -5.9%

- FY2022: -4.9%

- FY2023: -5.2%

- FY2024: -5.9%

- FY2025: -5.1%

- FY2026: -5.7%

## Holders

## Price story

Down 29% since Dec 2023 · "Whitbread (LSE:WTB) Rejects Activist Demands After 2% Revenue Gain And Profit Drop" (finance.yahoo.com, Oct 2026) · sales -0.1%

Story as of 2026-10-16T10:00:08.641Z; price observation 2026-10-15.

- 2026-04-30: Premier Inn owner blames Reeves tax raid as it cuts 3,800 jobs ([uk.finance.yahoo.com](https://uk.finance.yahoo.com/news/premier-inn-owner-blames-reeves-080327421.html))

- 2026-06-18: Bookings rise at Premier Inn owner Whitbread amid leisure demand ([uk.finance.yahoo.com](https://uk.finance.yahoo.com/news/bookings-rise-premier-inn-owner-080400273.html))

- 2026-10-14: Whitbread (LSE:WTB) Rejects Activist Demands After 2% Revenue Gain And Profit Drop ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/whitbread-lse-wtb-rejects-activist-042902943.html))

### Sales · FY2025–2026

sales -0.1%; source https://filings.xbrl.org/21380099VMZKRMN3EX36/2026-02-26/ESEF/GB/0/21380099VMZKRMN3EX36-2026-02-26/reports/21380099VMZKRMN3EX36-2026-02-26-T01.xhtml; observed 2026-05-27.

- FY2017: GBP 3.1B 

- FY2018: GBP 2.0B 

- FY2019: GBP 2.0B 

- FY2020: GBP 2.1B 

- FY2021: GBP 589M 

- FY2022: GBP 1.7B 

- FY2023: GBP 2.6B 

- FY2024: GBP 3.0B 

- FY2025: GBP 2.9B 

- FY2026: GBP 2.9B 

### Gross margin · FY2026

gross margin 50.6%; source https://filings.xbrl.org/21380099VMZKRMN3EX36/2026-02-26/ESEF/GB/0/21380099VMZKRMN3EX36-2026-02-26/reports/21380099VMZKRMN3EX36-2026-02-26-T01.xhtml; observed 2026-05-27.

- FY2017: 30.5% 

- FY2018: 33.1% 

- FY2019: 33.3% 

- FY2020: 47.2% 

- FY2022: 32.3% 

- FY2023: 48.2% 

- FY2024: 66.3% 

- FY2025: 64.3% 

- FY2026: 50.6% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in lodging; annual sales are GBP 2.9 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-27); FY2026: revenue 2920200000; grossProfit 1477300000; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 50.6% to 66.3% during 2024–26; it earns 5.6% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-27); FY2024: grossProfit / revenue = 66.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-27); FY2025: grossProfit / revenue = 64.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-27); FY2026: grossProfit / revenue = 50.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-27); 10-year return on capital observations [[2017,0.14342886150858147],[2018,0.10522133945632256],[2019,0.06369325233172013],[2020,0.05906624247018528],[2021,-0.07024779696359455],[2022,0.0033100022937622917],[2023,0.05071153878640632],[2024,0.06718365255268721],[2025,0.04464632613603405],[2026,0.053806505951166074]]; median 0.056436374210675676. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 8 of 10 years; bought back GBP 261.7 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-27); FY2017: growth capex 238085774.78165066; upkeep 333114225.21834934; owner earnings 308585774.78165066. Growth capex / owner earnings = 0.7715383994939998.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-27); FY2018: growth capex 0; upkeep 467000000; owner earnings 28600000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-27); FY2019: growth capex 74798296.89552641; upkeep 404801703.1044736; owner earnings 30298296.89552641. Growth capex / owner earnings = 2.468729419130172.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-27); FY2020: growth capex 28252911.335310638; upkeep 365147088.66468936; owner earnings 121552911.33531064. Growth capex / owner earnings = 0.23243302875217337.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-27); FY2022: growth capex 0; upkeep 221500000; owner earnings 147900000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-27); Dividend observations: [[2017,167100000],[2018,177600000],[2019,187400000],[2020,159900000],[2021,0],[2022,0],[2023,119100000],[2024,164700000],[2025,178100000],[2026,168800000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-27); FY2026: cash repurchases 261700000 GBP.

### Are managers owners

Insiders own 2.7% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); WTB.LSE SharesStats.PercentInsiders = 2.713 percentage points; cache date 2026-10-16.

### What the price says

The price is 1.5 times annual sales; cash earnings are negative.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-27); Closing price 2586 GBX; reporting-to-trading FX 100; FY2026 annual sales per share 17.289520426287744; price multiple 1.4957037189233613. FY2026 cash earnings/share -5.454233274126702. Closing-price date 2026-10-15.

## Monthly share-price history (GBX per share)

- 2016-10: GBX 3,615.00 per share

- 2016-11: GBX 3,464.00 per share

- 2016-12: GBX 3,776.00 per share

- 2017-01: GBX 3,925.00 per share

- 2017-02: GBX 3,825.00 per share

- 2017-03: GBX 3,958.00 per share

- 2017-04: GBX 4,035.00 per share

- 2017-05: GBX 4,291.00 per share

- 2017-06: GBX 3,967.00 per share

- 2017-07: GBX 3,848.00 per share

- 2017-08: GBX 3,758.00 per share

- 2017-09: GBX 3,766.00 per share

- 2017-10: GBX 3,693.00 per share

- 2017-11: GBX 3,568.00 per share

- 2017-12: GBX 4,000.00 per share

- 2018-01: GBX 3,881.00 per share

- 2018-02: GBX 3,883.00 per share

- 2018-03: GBX 3,700.00 per share

- 2018-04: GBX 4,281.00 per share

- 2018-05: GBX 4,215.00 per share

- 2018-06: GBX 3,959.00 per share

- 2018-07: GBX 3,915.00 per share

- 2018-08: GBX 4,596.00 per share

- 2018-09: GBX 4,717.00 per share

- 2018-10: GBX 4,400.00 per share

- 2018-11: GBX 4,598.00 per share

- 2018-12: GBX 4,579.00 per share

- 2019-01: GBX 4,887.00 per share

- 2019-02: GBX 4,853.00 per share

- 2019-03: GBX 5,078.00 per share

- 2019-04: GBX 4,460.00 per share

- 2019-05: GBX 4,630.00 per share

- 2019-06: GBX 4,629.00 per share

- 2019-07: GBX 4,523.00 per share

- 2019-08: GBX 4,373.00 per share

- 2019-09: GBX 4,294.00 per share

- 2019-10: GBX 4,061.00 per share

- 2019-11: GBX 4,601.00 per share

- 2019-12: GBX 4,846.00 per share

- 2020-01: GBX 4,470.00 per share

- 2020-02: GBX 3,894.00 per share

- 2020-03: GBX 3,030.00 per share

- 2020-04: GBX 2,980.00 per share

- 2020-05: GBX 2,528.00 per share

- 2020-06: GBX 2,222.00 per share

- 2020-07: GBX 2,180.00 per share

- 2020-08: GBX 2,529.00 per share

- 2020-09: GBX 2,125.00 per share

- 2020-10: GBX 2,147.00 per share

- 2020-11: GBX 3,031.00 per share

- 2020-12: GBX 3,100.00 per share

- 2021-01: GBX 2,787.00 per share

- 2021-02: GBX 3,395.00 per share

- 2021-03: GBX 3,426.00 per share

- 2021-04: GBX 3,244.00 per share

- 2021-05: GBX 3,182.00 per share

- 2021-06: GBX 3,122.00 per share

- 2021-07: GBX 3,046.00 per share

- 2021-08: GBX 3,208.00 per share

- 2021-09: GBX 3,316.00 per share

- 2021-10: GBX 3,270.00 per share

- 2021-11: GBX 2,803.00 per share

- 2021-12: GBX 2,995.00 per share

- 2022-01: GBX 3,022.00 per share

- 2022-02: GBX 2,924.00 per share

- 2022-03: GBX 2,857.00 per share

- 2022-04: GBX 2,817.00 per share

- 2022-05: GBX 2,723.00 per share

- 2022-06: GBX 2,478.00 per share

- 2022-07: GBX 2,598.00 per share

- 2022-08: GBX 2,504.00 per share

- 2022-09: GBX 2,302.00 per share

- 2022-10: GBX 2,572.00 per share

- 2022-11: GBX 2,584.00 per share

- 2022-12: GBX 2,570.00 per share

- 2023-01: GBX 3,041.00 per share

- 2023-02: GBX 3,089.00 per share

- 2023-03: GBX 2,987.00 per share

- 2023-04: GBX 3,247.00 per share

- 2023-05: GBX 3,286.00 per share

- 2023-06: GBX 3,386.00 per share

- 2023-07: GBX 3,499.00 per share

- 2023-08: GBX 3,440.00 per share

- 2023-09: GBX 3,464.00 per share

- 2023-10: GBX 3,328.00 per share

- 2023-11: GBX 3,091.00 per share

- 2023-12: GBX 3,656.00 per share

- 2024-01: GBX 3,596.00 per share

- 2024-02: GBX 3,303.00 per share

- 2024-03: GBX 3,314.00 per share

- 2024-04: GBX 3,167.00 per share

- 2024-05: GBX 2,953.00 per share

- 2024-06: GBX 2,975.00 per share

- 2024-07: GBX 2,910.00 per share

- 2024-08: GBX 2,885.00 per share

- 2024-09: GBX 3,134.00 per share

- 2024-10: GBX 3,013.00 per share

- 2024-11: GBX 2,850.00 per share

- 2024-12: GBX 2,946.00 per share

- 2025-01: GBX 2,813.00 per share

- 2025-02: GBX 2,674.00 per share

- 2025-03: GBX 2,449.00 per share

- 2025-04: GBX 2,593.00 per share

- 2025-05: GBX 2,894.00 per share

- 2025-06: GBX 2,823.00 per share

- 2025-07: GBX 3,053.00 per share

- 2025-08: GBX 3,145.00 per share

- 2025-09: GBX 3,220.00 per share

- 2025-10: GBX 2,897.00 per share

- 2025-11: GBX 2,490.00 per share

- 2025-12: GBX 2,550.00 per share

- 2026-01: GBX 2,724.00 per share

- 2026-02: GBX 2,600.00 per share

- 2026-03: GBX 2,296.00 per share

- 2026-04: GBX 2,234.00 per share

- 2026-05: GBX 2,348.00 per share

- 2026-06: GBX 2,391.00 per share

- 2026-07: GBX 2,510.00 per share

- 2026-08: GBX 2,459.00 per share

- 2026-09: GBX 2,386.00 per share

- 2026-10: GBX 2,586.00 per share

## Annual estimated value (GBX per share)

- FY2017: low GBX 3,269.47 per share, central GBX 4,670.31 per share, high GBX 5,486.02 per share

- FY2018: low GBX 1,262.49 per share, central GBX 1,432.78 per share, high GBX 1,659.47 per share

- FY2019: low GBX 2,891.73 per share, central GBX 3,050.51 per share, high GBX 3,261.89 per share

- FY2020: low GBX 1,023.15 per share, central GBX 1,127.86 per share, high GBX 1,267.25 per share

- FY2021: low GBX 663.08 per share, central GBX 669.57 per share, high GBX 678.22 per share

- FY2022: low GBX 675.67 per share, central GBX 694.34 per share, high GBX 719.19 per share

- FY2023: low GBX 776.52 per share, central GBX 818.23 per share, high GBX 861.33 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original ESEF filing](https://filings.xbrl.org/21380099VMZKRMN3EX36/2026-02-26/ESEF/GB/0/21380099VMZKRMN3EX36-2026-02-26/reports/21380099VMZKRMN3EX36-2026-02-26-T01.xhtml); period 2026-02-26, filed 2026-05-27.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.