Costa Coffee reports revenue rise and return to operating profit after cancelled sale
Costa Coffee said its refurbishment and product strategy boosted sales, delivering £1.3bn revenue and an operating profit of £20m after Coca-Cola abandoned a sale.
Costa Coffee announced that its refurbishment programme and product innovations have begun to pay off, with revenue reaching £1.3bn and an operating profit of £20m for 2025, reversing a £13.5m loss the previous year. Statutory profit decreased to £62m. The chain opened 79 new UK stores in 2025 and aims to add 40 to 50 locations over the next year, while continuing a large-scale refurbishment that has refreshed 1,063 UK and Ireland sites since 2023.
Costa also noted strong demand for its Matcha, Ube and iced drinks. Meanwhile, competitor Greggs overtook Costa as the country’s biggest branded coffee destination, operating 2,737 outlets compared with Costa’s 2,707. The company serves over 4 million cups daily and has 6 million loyalty members.
Why it matters
Costa's turnaround shows how strategic investments can revive profitability in a competitive coffee market.
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