Whitbread's focus pays dividends
Whitbread said a renewed focus on its hotels and pub restaurant businesses helped the group post a 9.7 per cent increase in overall turnover in the year to February 26, 2009, to £1,334.6m.
Like-for-like sales were up four per cent, while pre-tax profits were up nine per cent to £229.9m. A final dividend of 26.9p a share was unchanged, although the group's full dividend for the year was up 1.5 per cent to 36.55p.
Whitbread said its branded restaurants had delivered good progress in the year, "as we continue to attract customers looking for fresh and well-prepared food at great prices".
Revenues increased by 3.2 per cent to £460.1m, with restaurants achieving a like-for-like covers growth of 7.9 per cent and a like-for-like sales increase of 4.6 per cent, boosted by new menus and "improved environments". Average like for like spend per head on food is £7.46.
"In an early response to food price inflation, we took steps to re-engineer menus with more emphasis on the value proposition and a focus on lower cost dishes," the group said.
"As a result, we have been able to introduce every day great value offers such as Brewers Fayre's two main meals deal for £9.
After merging its hotels and pub restaurants business last year Whitbread said it now had a total of 372 restaurants with 328 on joint sites: 130 Beefeaters; 130 Brewers Fayres; 105 Table Tables, and seven Taybarns.
The number of standalone restaurants in the year was reduced to 44 units.
Whitbread's Costa Coffee business saw overall turnover up 22 per cent, with like-for-like sales up a more modest two per cent.
Looking ahead Whitbread said its Premier Inn operation had been "impacted by the increasingly harsh economic environment but continues to outperform the market.
"Against tough comparatives, its performance since the start of the financial year has softened further whilst remaining within the range of market expectations. Both Costa and restaurants have traded positively in line with the second half of the last financial year."
