Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Greene King Rallies 4%

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

LONDON -- Greene King (LSE: GNK.L  ) rallied 23 pence, or 4%, to 587 pence in early London trade after the pub and brewing group published details of its current trading.

The FTSE 250 firm, which operates about 2,300 pubs, restaurants, and hotels across Britain and owns the Hungry Horse and Old English Inns chains, said like-for-like sales had advanced 5% during the summer.

Greene King confirmed underlying food sales had experienced 5.2% growth, with drinks sales recording 5.0% growth and room sales registering 4.9% growth. The group confirmed the Olympics had a "minimal net impact" on the overall performance.

Greene King also said profits per tenanted pub had risen 4% and total beer volumes were up 0.4%. Old Speckled Hen and Greene King IPA were among the beers to achieve "good growth."

Looking ahead, Rooney Anand, Greene King's chief exec, said:

We believe underlying trading trends across the business have been maintained through the summer, despite the disappointing weather. This is encouraging for the rest of the year, although we expect consumer confidence to remain subdued.

However, we remain confident that our Retail growth strategy, combined with our focus on delivering excellent value, service and quality to our customers, will continue to deliver earnings and dividend growth for our shareholders.

This morning's statement ought to reassure Greene King's investors and underpin modest profit and dividend growth for the current year. City projections made before today currently place the shares on a P/E of 11 and yield of 4.3%.

The present rating looks fair, especially as Greene King's dividend has inched higher every year throughout the banking crash and subsequent recession.

Indeed, such dividend resilience could make Greene King a possibility for Neil Woodford, the legendary fund manager whose blue-chip income portfolios thrashed the FTSE 100 during the five, 10, and 15 years to 2011.

To discover which dividend stocks market-beater Woodford currently owns, this special report -- "8 Top Dividend Shares Held By Britain's Super Investor" -- reveals all and is 100% free to download today.

Investing is by no means easy in today's uncertain economy. That's why we've published "Top Sectors of 2012" -- our guide to three favorable industries. This free report will be dispatched immediately to your inbox.

Further Motley Fool investment opportunities:

Maynard Paton does not own any share mentioned in this article. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2005173, ~/Articles/ArticleHandler.aspx, 10/23/2016 4:38:33 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 1 day ago Sponsored by:
DOW 18,145.71 -16.64 -0.09%
S&P 500 2,141.16 -0.18 -0.01%
NASD 5,257.40 15.57 0.30%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes