Whitbread expects to exceed expectations for its full financial year after strong performance by Costa Coffee helped to drive a rise in sales for the third quarter.
Costa saw an increase of 6.7% in like-for-like sales in the quarter to November 26, with total sales in UK and overseas franchise units – including new openings – up 28.2% to £141.8m.
There was also positive news from Premier Inn, which saw a 3.1% decline in like-for-like sales in the quarter - more than half the fall seen in the previous quarter.
Regional revenues per available room were down by 7.9%, against the wider hotel industry's drop of 11.1%.
Across the group, including Beefeater and Brewers Fayre pub restaurants, like-for-like sales were up 0.3%.
Unveiling the figures, Whitbread chief executive Alan Parker predicted that that 2009/10 financial results will exceed the top end of City predictions.
“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,” he said.
“The positive momentum in sales and our rigorous cost control lead us to expect that our 2009/10 results will somewhat exceed the top end of market estimates.”
The company provided no further details on its discussions to take over Coffeeheaven, details of which emerged last week.
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By Daniel Thomas
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