Costa Coffee owner posts 2.6% sales growth in Q1

Whitbread said underlying sales at its Costa Coffee chain recovered over the last three months and its Premier Inn hotel brand continued to grow, sending shares in the company 3% higher.

Costa reported underlying sales growth of 2.6% in the 13 weeks ended June 2, its financial first quarter, recovering from a disappointing 0.5% level it recorded in the 11 weeks to February 11.

It blamed that performance on a mild winter and fewer people on the high street.