Costa Coffee and Premier Inn boost sales at Whitbread
Tuesday 10 December 2013
Strong demand for Costa coffee and a solid performance by budget Premier Inns saw a sharp rise in third-quarter sales at Whitbread, leaving it confident it will meet targets for the year
Costa has opened 246 new shops so far this year, including 133 in the UK, and will hit its target of 300 for the year by Christmas.
Sales were also boosted by the increasingly cold weather in October and November with sales in the last 13 weeks up by more than 20 per cent.
On the more conservative measure of sales by stores open for at least 12 months, the 13-week growth rate was 4.9 per cent.
Finance director Nicholas Cadbury said recent sales had been boosted by its festive cups and flavours, with its gingerbread and cream latte proving the best-seller at more than 12,000 cups a day.
Premier Inn had another strong quarter in London, where revenues rose by 16 per cent on an extra 10 per cent of rooms available. Outside London, revenues rose 13.5 per cent on 6.9 per cent more rooms.
But the company has scaled back its room-opening plans for the year from 4000 to 3500, largely because of a delay in the completion of a 270-room Premier Inn in central London. Cadbury would not say where this is but said the delay was down to refurbishing the leased former office building. The hotel will still open in the spring.
In restaurants, which include Beefeater and Brewers Fayre, there was a third-quarter revival. Like for-like sales, which had been negative in the first half, grew by 1.8 per cent.
Chief executive Andy Harrison said: “Our network expansion, as we deliver our growth milestones, combined with a strong focus on returns should continue to generate substantial shareholder value and create many new jobs.”
Richard Hunter of Hargreaves Lansdown said: “The key drivers of Whitbread’s recent success, Costa and Premier Inn, continue to power ahead, while an improvement in fortunes at its restaurant business and some overseas progress all contribute to a promising update.”
- 1 Barbarians vs Samoa interrupted by sprinklers as fans criticise lack of Wi-Fi and poor seating at West Ham's Olympic Stadium
- 2 Watch the Supermoon live: How to see the brightest Moon of the year tonight
- 3 Hulk Hogan wants to be Donald Trump's running mate in the US Presidential election
- 4 Blood Moon and Supermoon: September to bring brightest – and dimmest – full Moon of the year on same night
- 5 David De Gea to Real Madrid: Real finally get their man with £29m bid for Manchester United goalkeeper
Caitlyn Jenner car crash: Driver who died in collision sued by surviving passengers for $18.5m
Watch the Supermoon live: How to see the brightest Moon of the year tonight
Hulk Hogan wants to be Donald Trump's running mate in the US Presidential election
Blood Moon and Supermoon: September to bring brightest – and dimmest – full Moon of the year on same night
Turkey duped the US, and Isis reaps rewards
Climate change: 2015 will be the hottest year on record 'by a mile', experts say
'Women only' train carriages: Jeremy Corbyn unveils radical move to tackle public harassment
Black holes are a passage to another universe, says Stephen Hawking
Iain Duncan Smith 'should resign over disability benefit death figures', says Jeremy Corbyn
Tony Blair attacks Jeremy Corbyn's 'Alice In Wonderland' politics
Theresa May says jobless migrants should be banned from entering the UK
iJobs Money & Business
£25000 - £30000 per annum: Recruitment Genius: From modest beginnings the comp...
£35000 - £40000 per annum: Recruitment Genius: From modest beginnings the comp...
£15000 - £65000 per annum: Recruitment Genius: This is an exciting opportunity...
£18000 - £20000 per annum: Recruitment Genius: This is a fantastic opportunity...