Broker snap: Whitbread's results show resilience, says Evolution

7th Sep 2011 12:29

Evolution Securities has confirmed its buy rating on coffee shop, restaurant and hotel owner Whitbread, saying that while the UK consumer outlook may be uncertain, "there is no evidence of the malaise affecting Whitbread".The firm was able to accelerate revenue growth during the first half, posting a 12.9% improvement in sales in the second quarter, up from a 9.2% increase in the first three months of the year. "This good performance is driven by product innovation, staffing to ensure minimal queues and good retail presentation. The one disappointment remains pub restaurants which have proved to be flat-footed recently after several years of outperformance," the broker said.The target price stays at 1,750p.Shares were 0.96% higher at 1,578p by 12:29 on Wednesday.BC