Whitbread plc (LON:WTB) served up higher annual profits and hiked its dividend, driven by a good performance at Premier Inn.
The group announced an 11.9% rise in profits to £546.3mln in the 53 weeks to March 3 on a 12% increase in revenue to £2.9bn.
Budget hotel chain Premier Inn boosted total sales by 12.9% and like-for-like sales by 4.2%.
Costa Coffee frothed up total sales by 15.9%, with system sales rising 15.3% and UK like-for-like sales gaining 2.9%.
The group boosted its full-year dividend by 10% to 90.35p.
Last month, a downbeat update from the group caused its shares to fall as it blamed mild weather and fewer shoppers for lower sales increases than a year earlier.
Commentators have questioned whether the slower sales are a sign of tougher times to come.
But on Tuesday, the stock ticked up 3.2% to 3991p as shareholders welcomed the results.
Chief executive Alison Brittain said: “Whilst it is only six weeks into our new financial year, we remain confident of making good progress.”