Whitbread shines in the gloom

Whitbread said today its focus on value had helped drive business across its pub restaurant business in recent months, but warned the tough trading environment would continue into 2010.

Group chief executive Alan Parker said that this year's "challenging market conditions" were likely to continue into 2010, but he added that a combination of "positive momentum in sales and our rigorous cost control" meant the group's 2009/10 results "will somewhat exceed the top end of market estimates".

The hotels to pub operation said today its overall like-for-like sales rose 0.3 per cent in the third quarter (Q3), a figure described by City analyst Simon French of Panmure Gordon as "significantly ahead of our expectations".

Its pub restaurant business had seen Q3 like-for-like sales up 2.3 per cent, a 0.7 percentage point improvement on quarter two's figures.

Total turnover in the pub restaurant operation for Q3 was up 2.8 per cent, although for the 39 weeks to November 26, 2009, this figure saw a dip of 1.3 per cent.

Whitbread said its value for money brands, which included Beefeater and Brewer's Fayre, had increased covers by more than six per cent in the year to date.

The group said it had halved the slide in like-for-like turnover across its Premier Inn business, down 3.1 per cent, while its Costa coffee business saw like-for-like sales up nearly seven per cent in Q3, and 3.9 per cent in the year to date.

The market responded positively to the trading update, with City traders sending Whitbread's shares up nearly three per cent - 39p - to 1,369p.