 reported a 3.2 percent rise in quarterly sales, sending shares up on Wednesday morning. The parent firm of coffee chain, Costa, said its UK coffee sales grew by 5.2 percent in the quarter driven by new store openings and Express machines.){kind=link}
Whitbread (LON:WTB) reported a 3.2 percent rise in quarterly sales, sending shares up on Wednesday morning.
The parent firm of coffee chain, Costa, said its UK coffee sales grew by 5.2 percent in the quarter driven by new store openings and Express machines.
This offset a reported 2 percent fall in like-for-like sales in the first three months of the year across the coffee chain brand.
Its UK arm of its Premier Inn business posted total accommodation sales growth of 4.3 percent which was facilitated by additional capacity.
The firm also stated: “The UK like-for-like sales decline resulted principally from footfall weakness in traditional shopping locations, whereas travel locations continued to show good growth.”
The group is also currently in the midst of separating its Costa and Premier Inn businesses, as it looks to boost efficiency amidst a challenging retail climate.
“Whitbread has started the year growing total group sales by 3.2 percent. We expect to deliver in-line with expectations for the full year and we continue to make strong progress on our efficiency programme,” said Alison Brittain, Whitbread’s chief executive.
“Our stores remain highly profitable and deliver an excellent return on capital,” added Whitbread boss Alison Brittain.
Back in April, Whitbread shares rose as much as 7 percent, after US hedge fund Elliot Advisors became the largest shareholder of the group.
Elliot Advisors now holds a 6 percent stake in Whitbread, and the firm have been key advocates of breaking up the “distinct” businesses.
Shares in the group are currently trading up 2.47 percent as of 11.18AM (GMT), as investors react to the news.