Whitbread buys Coffee Nation
Whitbread, the leisure group, has this morning reported a 6.7% increase in like-for-like sales for the 50 weeks to 17 February 2011, driven by strong trading across its Costa Coffee and Premier Inn brands.
The company, which this morning announced the £59.5m acquisition of Coffee Nation, experienced a slight slow down in like-for-like sales in the 11 weeks to 17 February, due to the impact of the harsh weather in December but still reported a 3.9% increase against a strong final quarter last year. Total sales climbed 13.7% over the 50 weeks and were up 12.4% for the 11 weeks.
Like-for-like sales across its Costa Coffee brand increased 7.9% for the 50 weeks and 3.0% for the final 11 weeks, with total sales up 28.5% and 23.9% respectively.
Total system sales were up 31.1% to £630m, with total franchise system sales rising 34.3% to £268m.
On target
It said it remained on target to grow the Costa business to 3,000 stores by the end of 2014/15.
The company said that it had experienced a 6.5% increase in like-for-like sales across its pub restaurant estate, which includes the Beefeater and Table Table brand, during the longer period, and a 4.2% rise in the 11 weeks to 17 February.
The group said it had seen a rise in total sales across its pub restaurant division in the 11 weeks, up 3.9%, compared to an increase of 3.6% over the 50 weeks.
It Premier Inn budget and restaurant brand reported a 8.8% rise in like-for-like sales for the 50 weeks, and a 5.1% rise in the final 11 weeks.
The company said it had seen RevPAR growth of 8.5% and that its restaurants delivered total covers growth of 5.6% for the year to date.
During the year it opened 22 hotels, 2,138 rooms and eight restaurants.
Performance
Andy Harrison, chief executive of Whitbread, said: "Whitbread continues to perform well with total sales in the last 11 weeks up 12.4%. Our like-for-like sales are good especially in a challenging economic environment and against tougher comparatives.
"Our like-for-like sales are good especially in a challenging economic environment and against tougher comparatives. We anticipate that the out turn for the year will be in line with market expectations, demonstrating strong profit growth.
"Whilst it is premature to judge trajectory of the UK consumer economy in 2011 we shall continue to invest in growing our strong brands."
