Costa’s main coffee shop arm has returned to profitability, reporting an operating profit of £20m in the year ending 31 December 2025. This follows losses of £13.5m in 2024 and £5.8m the year before, according to accounts filed at Companies House.
The return to profit comes after the chain revamped its high street outlets and expanded its menu to include iced drinks, matcha, and fresher pastries. Revenues for Costa Limited rose by 5% to almost £1.3bn in 2025, compared with 1% growth in 2024.
The company, which operates 2,700 outlets in the UK and Ireland, also opened a net 50 new outlets in the UK last year. This marks its first net increase in several years, with plans for a further 50 new UK outlets this year, including more drive-thrus and high street locations.
Philippe Schaillee, Costa's chief executive, noted the chain experienced its strongest growth in visits in a decade. He highlighted increasing demand from younger consumers for decaf coffee and other alternatives, driven by concerns about caffeine consumption in the afternoon.
Costa also plans to remodel approximately 250 stores annually, having already updated over 1,200 of its 1,700 company-owned outlets. This includes the addition of more digital self-order kiosks, which are currently in 200 UK outlets.
The strong performance of the coffee shop arm contributed to a 3.5% rise in global sales for parent company Costa Group, reaching £1.74bn, and a 30% increase in global operating profit to £101m.