Costa Coffee has announced a year of "strong progress" after its owner, Coca-Cola, decided to halt plans for its sale. The coffee chain reported a five per cent increase in revenue, reaching £1.3bn last year, and returned to an operating profit of £20m in 2025, overturning a £13.5m loss from 2024.
Coca-Cola had intended to sell Costa to a private equity buyer but abandoned these plans in January, as potential bidders reportedly failed to meet its expectations. Costa's chief executive, Philippe Schaillee, attributed the improved performance to the firm's investment plan, including branch refurbishments and product innovation, which he stated have led to higher sales and increased productivity.
Despite this progress, Costa's statutory profit saw a seven per cent decrease to £62m. The company also saw Greggs overtake it earlier this month to become the UK's largest branded coffee destination, with 2,737 outlets compared to Costa's 2,707. Costa is adjusting its expansion strategy, planning to open between 40 and 50 new UK sites in the coming year, a reduction from the 79 stores opened in 2025.
The company is continuing with an extensive refurbishment programme, having refreshed 1,063 stores in the UK and Ireland since 2023, including 305 last year. Plans are in place to refurbish approximately 210 additional sites in 2026. Costa also highlighted the popularity of its iced drinks during summer heatwaves and the success of its Matcha and Ube drink innovations in driving customer growth.