Whitbread sees slowdown in growth in Q2

Costa’s like-for-like sales growth was 3% in Q2, against +5.7% in the half year. The restaurants division saw a 0.2% fall in like-for-likes in Q2 (H1: -0.1%) and like-for-like sales growth in Hotels and Restaurants was static at 1.8%. However, Premier Inn bucked the trend with a rise in like-for-like sales growth in the second quarter (3%) against the first half (2.9%).

Total Restaurant sales for the 11 weeks to 15 August were up 2.5%. Over the 24 weeks to 15 August, it said that its restaurant business performed in line with the Coffer Peach industry tracker outside of the M25, with like-for-like sales marginally down (0.1%) and total sales up 2.5%.

It said it was on track with its plan to open around 300 net new stores and 850 Costa Express units in the full year.

Andy Harrison, chief executive of Whitbread, said: “Whitbread delivered another good performance, with total sales growth of 10.8% for the 11 weeks to 15th August and like for like sales growth of 2.1%.

“So far this year Premier Inn has grown total sales by 12.1%, like for like sales by 2.9% and added 1,270 new rooms, with especially strong growth in London, where total sales were up 17.7%. Our restaurant business, which does not benefit from the stronger London economy, performed in line with the Coffer Peach industry tracker*2 with a marginal like for like sales decline of (0.1%). Costa, the UK’s favourite coffee shop, has continued to grow rapidly with total sales up 20.8%.

“The strong UK like for like sales growth of 5.7% was biased towards the first quarter due to weather comparatives. Costa also celebrated the opening, in Bangkok, of its 1,000th international coffee shop in August.

“We are on track with our annual plan and our ambitious five year growth milestones. Combined with our emphasis on returns, this growth should continue to create substantial shareholder value.”