Whitbread hails Costa performance Posted by Matthew

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Whitbread hails Costa performance

Posted by Matthew in Articles on 14.12.2009 10:23:49 am | 711 views

Coffee business Costa continued to defy the recession after owner Whitbread reported another "outstanding" performance by the chain.

 

Costa's trading in the quarter to November 26 saw an increase of 6.7% in like-for-like sales, more than double the rise in the first half.

 

Total sales in UK and overseas franchise units were £141.8 million, up 28.2% after Costa opened a net 154 stores in the UK and 22 internationally during the first three quarters of Whitbread's financial year.

 

Across the group, which operates Premier Inn hotels and Beefeater and Brewers Fayre pub restaurants, like-for-like sales were 0.3% higher in the quarter.

 

The performance prompted Whitbread chief executive Alan Parker to forecast that 2009/10 financial results will exceed the top end of City predictions.

 

He added: "This year's challenging market conditions are likely to continue into next year, however, Whitbread's improving performance is the result of both our action to gain market share and the trend for business and consumers to seek strong value for money brands."

 

Another cause for cheer came from Whitbread's Premier Inn chain, which reported a 3.1% decline in like-for-like sales in the quarter. This was more than half the fall seen in the previous quarter after Premier rolled out a new pricing strategy and targeted more of the weekend leisure market.

 

Regional revenues per available room were down by 7.9%, against the wider hotel industry's drop of 11.1%, Whitbread added.

 

The company said its pub restaurants achieved a robust performance with like-for-like sales up by 2%, helped by the increased use of sites adjacent to Premier Inns.

Value-for-money brands such as Beefeater, Table Table and Taybarns increased the number of covers by 6.2% in the year to date.

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Matthew Anderson

The Franchise Shop

 

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