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Whitbread to froth up revenue after Costa Coffee expansion

COSTA owner Whitbread is expected to report revenue growth on the back of expansion when it reveals results for the six months to the beginning of September tomorrow.

Consensus forecasts expect the group’s revenue to be £1.6bn for the period, with underlying earnings rising to nearly 138p per share.

Analysts at Deutsche Bank forecast 9.5 per cent growth in Costa’s revenue, due to site rollouts, but said like-for-like sales in the UK were likely to only grow around 0.8 per cent.

Deutsche Bank predicted 4.6 per cent growth in underlying earnings to £344m.

For Premier Inn, Whitbread’s hotel business, revenue was expected to be up nine per cent, despite a slight slowdown in London during August.

Whitbread also owns restaurant brands including Beefeater, but analysts expect moderate trading from these due to a “flat market”.

 

(c) 2017 City A.M.

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