LONDON (ShareCast) - Positive broker coverage helped send shares in Whitbread higher after the coffee shop and hotel chain operator reported a 7% rise in like-for-like sales Thursday morning.

Cazenove, which reiterated its ‘outperform’ rating on the stock, said the statement showed that any signs of a slowdown are limited to the group’s Costa Coffee chain. It pointed to ‘impressive growth’ at its Premier Inn hotel chain. Another broker, Investec, also repeated its ‘buy’ advice on Whitbread.

However, KBC Peel Hunt remains ‘neutral’ on Whitbread. It said that the Premier Inns division is enjoying an ‘Aldi effect’ as companies seek to reduce expenses, but added that rising unemployment in 2009 may undermine this.

• News Channel