Double-Digit Sales Growth Lifts Whitbread

LONDON -- Shares in Whitbread (LSE: WTB  )  have risen 2.4% in early trade this morning following another positive interim management statement.

The owner of the Costa Coffee and Premier Inn chains saw total sales growth of 13.8% in the 13 weeks to May 30, 2013, with like-for-like sales increasing 3.1%. It was the coffee shop chain that outperformed, though, soaring 24.8% year on year as management pinpointed the unseasonably cold weather as a positive factor.

Elsewhere, Premier Inn saw total sales lift 12.7% against the comparative period last year, while other "hotels and restaurants" accounted for an 8.8% increase, and "restaurants" contributed a 2.6% rise.

Chief Executive Andy Harrison commented:

Premier Inn, the U.K.'s leading hotel chain, maintained its positive momentum ... against strong comparatives in the London hotel market last year. Our restaurants saw an improved performance in recent weeks after a tough start to the quarter due to the unseasonably cold weather. Costa, the U.K.'s favorite coffee shop, has continued to perform well, benefiting from the cold weather, with total sales growth of 24.8% and like for like sales growth of 8%.

We see no change to market conditions. Our plans for profitable organic growth are well established which, combined with our strong focus on returns, should create further substantial shareholder value.

Whitbread continues to grow, with 300 net new stores of Costa planned, while about 4,000 rooms and 10 joint site restaurants are in the offing for the full year, too.

At the current price of about 3,040 pence, whether Whitbread offers good value for money or is overpriced is, of course, up to you. But if you're looking for another company that should soar in price, we've pinpointed our favorite growth share and produced a special report in which we evaluate its finances, risks, and growth prospects going forward. Simply click here to get your copy delivered to your inbox immediately -- completely free.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2494862, ~/Articles/ArticleHandler.aspx, 9/17/2014 3:44:15 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement