Whitbread Plans to Expand its Business
Whitbread thinks that an increasing desire for coffee in young Chinese workers will help in expanding the business after revealing its recent boost in profits.
Alan Parker, the departing Chief Executive of Whitbread said that the future of Whitbread's Costa coffee chain is bright because of rising economic condition in Asia.
He gave examples of McDonalds and KFC, which has become quite famous in the People’s Republic in a very short span of time.
Whitbread has as many as 70 Costa outlets in Shanghai and Beijing and it targets mainly the young white-collar professionals. The Company’s latest share price was 35p to 1728p.
Whitbread is planning to boost its stable of Costa coffee stores from 1,700 to 3,000 by the year 2015.
The Company’s pre-tax profits went up by 42.5% to £151 million and the firm pleased its shareholders by offering around 17% increase in the interim dividend to 11.25p.
Mr. Parker has been associated with Whitbread since the year 1992 and is hopeful that his successor, Andy Harrison would ‘add even more value’ for shareholders and would also work hard to make a strong management team.
On January 11, Whitbread has decided to pay an 11.25p dividend, up by 16.6pc.