Whitbread plc (LSE:WTB) shares gained around 2.5% on Monday following a report by The Sunday Times outlining elements of a new five-year plan ahead of the company’s full-year results later this week.
According to the report, Whitbread is considering reducing its freehold property ownership to about 40%, down from roughly 50% currently. The proposed shift, alongside broader efficiency measures, could unlock approximately £1.5 billion in capital, which may be returned to shareholders.
The reported strategy follows disruption to the company’s previous five-year plan, which was impacted by higher business rates introduced in last year’s UK budget, as well as potential pressure from activist investor Corvex.
Analysts at Bernstein suggested the revised capital return target would fall slightly below the £2 billion goal outlined in 2024 but remain above the roughly £1.6 billion consensus estimate compiled by Bloomberg and higher than Bernstein’s own £1.3 billion projection.
The firm also noted that increasing reliance on leasehold assets could lead to higher lease-related debt and costs, which may weigh on updated profit before tax expectations—though these factors were not detailed in the initial media report.
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