Whitbread CEO admits board occasionally considers spinning off Costa but downplays prospects at present
Whitbread’s [LON: WTB] new CEO Alison Brittain has downplayed suggestions that the UK-based leisure company might spin off its Costa chain of coffee shops, The Times reported.
When asked about the prospects of a spin-off of Costa, Brittain conceded that the Whitbread board occasionally considers such a move, but added that at present, Costa is better off under Whitbread’s ownership.
The CEO went on to add that spinning off Costa could be interesting or viable depending on the circumstances. However, that does not seem to be an option that’s up for consideration, Brittain added.
Brittain was speaking as Whitbread published its 3Q results update, the article noted. Whitbread posted a 3.5% increase in like-for-like sales in the quarter to 26 November, while Costa’s like-for-like sales increased by 2.5%.
Background:
An analyst cited by a report in The Times on 5 February estimated a valuation of GBP 3.2bn (EUR 4.47bn) for Costa.
The Times (London), previously reported intelligence