Whitbread PLC's (LSE:WTB) new boss, Dominic Paul, will face his first assessment from investors when the Premier Inn owner reports full-year results on Tuesday.
The FTSE 100 boss took over from Alison Brittain in January and is tasked with providing the company with a clear path to recovery after the pandemic decimated the travel and hospitality industry.
Analysts are predicting that sales will increase to £2.6bln for the 12 months to March 2023, having come in at £1.7bln the year before.
Total sales in the hospitality company jumped 23% year-on-year in the first half and were further strengthened by an 18% rise in the third quarter compared to pre-pandemic levels.
Before leaving, Alison Brittain had confirmed that costs were expected to grow by 8-9% in 2023 and then by 7-8% in 2024.
Investors will be keen to see whether Paul can control these increases and maintain Brittain’s plans to cut costs by £140mln by 2025.
In terms of profits, Whitbread hasn’t offered any formal guidance apart from stating it was “confident in the full-year outlook”, with pre-tax earnings forecast by analysts to reach £389mln – taking it back above 2020 levels.
Another point of focus will be how the group, which owns pub restaurant brands like Beefeater and Brewers Fayre, can manage its mix between food, drink and accommodation.
In its third quarter, accommodation was well above 2020 levels, but food and drink remained still lagged behind its pre-Covid benchmark.
Shares in the hospitality company are around 3% higher than a year ago, having opened on Monday at just over 3,140p.
The share price has lifted almost 20% in the last six months driven by falling oil prices, an improved outlook on British and European markets and a positive third-quarter update.