Buoyed by impressive profits growth, Whitbread hikes dividend by nearly 20%

Whitbread, the operator of Costa Coffee and Premier Inn hotel chains, on Tuesday announced an impressive rise in profits and rewarded its shareholders with a nearly 20 per cent increase in dividend.

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 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".

Whitbread in advanced talks to buy Coffeheaven

The Costa Coffee chain operator Whitbread is in advanced talks regarding a possible acquisition of the coffee shop operator Coffeeheaven for about £32 million.

Both, Whitbread and Coffeeheaven have confirmed that they were pursuing talks over a 24p-a-share offer.

Whitbread has 1,000 Costa Coffee shops in Britain along with 400 overseas. It is looking for further expansion.