fredag den 2. december 2016

Why Whitbread is set to prosper from Brexit

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DAILY BULLETIN
Friday 2 December 2016
Why Whitbread is set to prosper from Brexit
by Robert Stephens | Equities | 5 mins. to read
Whitbread
It's easy to look at Brexit and come to the conclusion that it will be bad for all UK-focused companies. After all, it brings uncertainty, change and a potentially negative impact on the UK's overall economic performance.

However, as with any situation, there will be winners and losers. Some companies will see their sales and profitability fall if reduced spending and investment become a reality. However, other companies could record little change in their performance, while some will inevitably benefit from Brexit.

Among those companies which are well-placed to prosper from Brexit is Whitbread (LON:WTB). The Costa and Premier Inn owner has a loyal customer base, which means that its sales performance may be more akin to a consumer staple than a consumer discretionary. Further, Premier Inn in particular could benefit from consumers trading down to budget hotel options, while the company's international growth potential remains high. Therefore, in my opinion Whitbread will prosper from Brexit.

 
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QUOTE OF THE DAY

"I don't think anyone should write their autobiography until after they're dead."
                                                 Samuel Goldwyn
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