Whitbread hints at Beefeater sale - Company News - Whitbread PLC reports financial data, may sell off restaurant chain - Brief Article

Eurofood, Nov 7, 2002

The Beefeater chain of restaurants could be put up for sale by owners Whitbread, after it reported lower growth rates than other brands at the hotels and leisure group.

Whitbread reported an 11% increase in interim profit, but chief executive David Thomas said some Beefeater restaurants may be re-branded or sold off.

Like-for-like sales at the 250-strong Beefeater chain rose by 1.4% for the six months to 31 August 2002, with operating profits up by 12%.

Whitbread seems to have recovered from its restaurant problems. Earlier this year its Pelican business was sold, and the restaurant business has returned a sales growth of 5% compared to a loss last year. Sales came in at 195.6m [pounds sterling] (310m [euro]) with operating profits up 69% to 6.1m [pounds sterling].

Overall Whitbread reported pre-tax profits of 121.3m [pounds sterling] at the halfway stage from its continuing business.

The David Lloyd Health Club brand and Travel Inn brand reported like-for-like sales growth of 6.3% and 6.6% respectively.

The Marriott hotel brand continued to suffer from lower tourist numbers.