Whitbread

Website: Whitbread
Index: FTSE 100
EPIC: WTB
Supersector: Travel and Leisure
Sector: Travel and Leisure
Subsector: Restaurants and Bars
Market Cap: £4.07B
Payout Frequency: Semi-Annual

Whitbread Dividend Analysis and Summary

Headline dividend details

Final dividend: 60.6p per share (unchanged vs FY25)
Total FY26 dividend: 97.0p per share (unchanged vs FY25)
Ex-dividend date: 21/05/2026 (derived from record date)
Record date: 22/05/2026
Payment date: 03/07/2026
Dividend policy: grow dividends broadly in line with earnings across the cycle; DRIP option offered

Context and coverage

Adjusted EPS: 208.5p (+7%); statutory EPS: 123.3p (-13%)
Dividend cover: c.2.15x on adjusted EPS (208.5p/97.0p); c.1.27x on statutory EPS
Adjusted PBT: £483m (flat); Adjusted EBITDAR: £1,074m (+4%)
Adjusted operating cash flow: £713m; cash dividends paid in FY26: £169m
Net debt: £709m (from £483m); lease-adjusted leverage: 3.3x (below 3.5x threshold; BBB IG maintained)

Dividend sustainability and growth outlook

Affordability looks sound on an adjusted basis: 2.15x cover and strong cash generation comfortably fund the current 97.0p payout.
Despite 7% adjusted EPS growth, the dividend was held flat, signalling a cautious stance amid heightened costs (business rates, wage inflation) and transformation spend.
FY27 headwinds: extension of the Accelerating Growth Plan (AGP) is guided to reduce profits by a net £10m in FY27; UK gross inflation at the top end of 6.5–7.5%, with c.£35m rates impact.
Supportive offsets: property recycling proceeds of £450–500m targeted in FY27 and reduced/retargeted capex (£200–300m net) underpin liquidity and flexibility.
Germany turned profitable (segment adj. PBT £2m) with guidance for a further c.£10m PBT uplift in FY27 (before one-offs), improving medium-term earnings support.
Overall: maintenance of the dividend at 97.0p appears prudent and sustainable; near-term growth likely modest until cost/AGP headwinds abate and German profits scale.

Structural/strategic developments relevant to future dividends

New Five-Year Plan: targets a material step-up in margins/returns by FY31; reallocation of capital, higher cost savings, and lower capital intensity via increased property recycling. Management explicitly targets “substantial cash returns to shareholders.”
AGP extension to convert/exit all remaining 197 branded restaurants: near-term profit drag in FY27 (net £10m), but aimed at higher returns thereafter.
Property transactions: £313m disposals in FY26, including £282m sale-and-leasebacks (average NIY 5.4%); ongoing recycling supports investment and returns but raises lease costs over time.
Buybacks: £250m completed (8.8m shares cancelled), complementing dividends within the capital allocation framework.

Risks and flags to dividend stability

Cost pressures: higher business rates (~£35m), wage and F&B inflation; UK gross inflation guided at the top end of 6.5–7.5%.
Transformation execution: AGP disruptions and broader change agenda could affect trading and timing of benefits; significant adjusting items (£185m) highlight ongoing restructuring.
Funding mix: increased use of sale-and-leaseback raises recurring lease costs; lease interest and ROU depreciation already rising. Lease-adjusted leverage at 3.3x remains within threshold but bears monitoring.
Dependence on property recycling: FY27 plan assumes £450–500m proceeds; weaker real-estate markets could delay/pressure terms.
Macro/geo risks: UK demand sensitivity, Germany’s recovery pace, and Middle East-related JV impact (c.£5m central PBT headwind) may introduce volatility.

Dividends Used in Calculation:

Ex-Dividend Date	Payment Date	Type	Amount	Currency
22/05/2025	04/07/2025	Final	60.60p	GBX
30/10/2025	05/12/2025	Interim	36.40p	GBX

Total (Annual Dividends Per Share): 97.00p

Dividend Yield = Annual Dividends Per Share (97.00p) ÷ Share Price (2420p) = 4.01%

Ex Dividend Date	Payment Date	Type	Amount	Currency
21/05/2026	03/07/2026	Final	60.6000p	GBX
30/10/2025	05/12/2025	Interim	36.40p	GBX
22/05/2025	04/07/2025	Final	60.60p	GBX
31/10/2024	06/12/2024	Interim	36.40p	GBX
23/05/2024	05/07/2024	Final	62.90p	GBX
02/11/2023	08/12/2023	Interim	34.10p	GBX
25/05/2023	07/07/2023	Final	49.80p	GBX
10/11/2022	16/12/2022	Interim	24.40p	GBX
26/05/2022	01/07/2022	Final	34.70p	GBX
07/11/2019	13/12/2019	Interim	32.65p	GBX
30/05/2019	05/07/2019	Final	67.00p	GBX
08/11/2018	14/12/2018	Interim	32.65p	GBX
24/05/2018	04/07/2018	Final	69.75p	GBX
09/11/2017	15/12/2017	Interim	31.40p	GBX
25/05/2017	30/06/2017	Final	65.90p	GBX
10/11/2016	16/12/2016	Interim	29.90p	GBX
26/05/2016	01/07/2016	Final	61.85p	GBX
19/11/2015	18/12/2015	Interim	28.50p	GBX
28/05/2015	03/07/2015	Final	56.95p	GBX
04/12/2014	09/01/2015	Interim	25.20p	GBX
28/05/2014	04/07/2014	Final	47.00p	GBX
06/11/2013	10/01/2014	Interim	21.80p	GBX

Year	Interim	Final	Currency	Total	Change
2024	36.400	62.900	GBX	99.300	18.350
2023	34.100	49.800	GBX	83.900	41.960
2022	24.400	34.700	GBX	59.100	-40.690
2019	32.650	67.000	GBX	99.650	-2.680
2018	32.650	69.750	GBX	102.400	5.240
2017	31.400	65.900	GBX	97.300	6.040
2016	29.900	61.850	GBX	91.750	7.370
2015	28.500	56.950	GBX	85.450	18.350
2014	25.200	47.000	GBX	72.200	231.190
2013	21.800		GBX	21.800

Number of Shares:

Payment	Paid	Amount
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