Whitbread has reported solid sales for its latest fiscal quarter of 9%, with coffee chain Costa driving growth and expected to increase in scale this year.
In Q3 Costa delivered total sales growth of 12.5% and good like-for-like sales growth of 4%. This performance was supported by its new advertising and promotional campaigns.
It announced that it expects to open 230-250 net new Costa coffee shops worldwide and to install at least 1,500 new Costa Express machines, having already surpassed our previous guidance of 1,250 in the current financial year. It expects total sale proceeds for the year to be in the region of £200m.
Whitbread expects to install at least 1,500 new Costa Express machines this financial year.
Restaurants also delivered a total sales growth growth for the 39 weeks of 0.5% with like for like sales down 0.2%, slightly ahead of a soft pub restaurant market outside the M25.
Premier Inn grew its total sales in the quarter by 9%. Whitbread opened 15 hotels in the UK since the start of the year, increasing the number of rooms available by 10%.
Alison Brittain, chief executive of Whitbread, commented: “We continue to make good progress against our three point strategic plan: to grow and innovate in our core UK businesses; to focus on our strengths to grow internationally; and to build the capability and platform to support future growth. We remain on track to open c.3,700 new UK Premier Inn rooms and our committed pipeline stands at around 14,000 UK hotel rooms.”