Whitbread Sees Complete Year Earnings Beat Forecasts on Back of Coffee Fix
Despite the recession, the demand for Costa coffee has not been dented, and this has led to Whitbread announcing that the company's complete year earnings for the current fiscal year will beat all forecasts pegged by analysts and experts.
According to the company, a recorded improvement in sales and cost cutting means that profits for the ongoing year will "somewhat exceed the top end of market estimates".
For the current year's third-quarter, the company's like-for-like sales grew by 0.3%, as opposed to the declines of 2.7% recorded for both the first and second quarters.
Sales at Costa coffee in particular have been good, rising 6.7% in the aforementioned quarter, which is a substantial rise from the 2.4% rise recorded for the previous quarter.
"More people have been coming in and ordering more food. People have given up big-ticket things but they haven't given up their cup of coffee", said Chief Executive Alan Parker, while stressing that the recorded rise has not been a result of a rise in prices.
As per the company, it is right on track to achieve its set target of 25 Million Pounds in cost savings for the coming year.