Whitbread LFL growth slows, but Costa owner still on track

Whitbread, the owner of Costa coffee, Premier Inn and Beefeater, saw a slight slowdown in like-for-like (LFL) sales growth in the third quarter but said it remains on track to hit full-year forecasts.

Group LFL sales increased by 6% year-on-year in the 13 weeks to 27 November, compared with the 7% rise in the first half. Year-to-date growth has now been pared to 6.7%.

Chief executive Andy Harrison said the company’s “strong trading momentum” continued into the third quarter.

“We remain confident of delivering full-year results in line with expectations, mindful that the fourth quarter last year was particularly strong, boosted by the absence of snow,” he said.

Total sales increased by 13.2% during the three-month period, with strong growth from Premier Inn (15.4%) and Costa (17%) making up for more subdued growth in its restaurants (2.3%).

“Our strong brands continue to win market share, reinforced by our ambitious organic network expansion,” Harrison said.

Whitbread remains on track to open around 4,500 new Premier Inn UK rooms and around 230 net new Costa stores worldwide this year.