Latest news with #JDWetherspoon
The Independent
a day ago
- Business
- The Independent
Wetherspoons enjoys increased sales as Brits toast to summer
JD Wetherspoon reported a 5.1 per cent increase in like-for-like sales for the three months ending 20 July, with overall sales volumes now surpassing pre-pandemic levels. The pub group's strong performance was primarily driven by robust draught sales, particularly Guinness, which chairman Tim Martin highlighted as a standout performer. Favourable weather conditions during the period also boosted visitor numbers, allowing many Wetherspoon pubs to capitalise on their beer gardens. Despite anticipating a £60 million hit from higher labour costs and increased national insurance contributions, Wetherspoons expects to meet its profit forecasts for the year. Mr Martin earlier called on Prime Minister Sir Keir Starmer to equalise VAT on food for pubs and restaurants with supermarkets, arguing the current system disadvantages pubs.
The Herald Scotland
2 days ago
- Business
- The Herald Scotland
Wetherspoon chief feeling 'clucking good' about pub giant
Wetherspoon, which has an estate of nearly 800 pubs, said it is on course to meet profit expectations for the year, despite hikes in employer national insurance contributions, national living and national minimum wage that took effect in April. Derren Nathan, head of equity research, Hargreaves Lansdown, said: 'JD Wetherspoon's flamboyant chairman Tim Martin was keen to point out a 'clucking good' performance for chicken in recent weeks, where volumes are now up around 50% compared to pre-pandemic levels. But it's the sunny weather that's helped sales keep tracking in the right direction. Given that June was the warmest on record, some investors may have been hoping for a bit more organic growth than the 5.1% seen in the final quarter of the year. Read more: 'But, despite the impact of increased labour costs, analyst forecasts expect operating profit to land a little ahead of last year at close to £140 million, with the bottom line also benefitting from reduced interest payments. The group has been trimming the tail of its estate by dropping underperforming units and is now leveraging its efficient operating model and brand strength to grab further market share. Its ambitions for new openings next year have risen from 10 to 15, with a similar number planned for the capital-light option of franchised units. Flagging consumer confidence remains a near-term threat but, overall, the JD Wetherspoon looks in good shape with the shares offering reasonable value, compared to the peer group.' Mr Martin, chairman of JD Wetherspoon, said: 'The company has benefitted from favourable weather in the fourth quarter, so that profits are anticipated to be in line with market expectations, notwithstanding the high tax and labour increases for the hospitality industry, which have been widely reported. In the next financial year, as well as investing in areas such as staff rooms, glass racks for 'branded' glasses, and gardens, the company plans to open approximately 15 new managed pubs and about the same number of franchised pubs. 'Sales volumes, which were very slow post-pandemic, have recently overtaken pre-pandemic levels. Wine, for example, has shown strong growth, with Villa Maria from New Zealand and Prosecco from Italy both shooting the lights out. Spirits have improved in recent months and whisky volumes are significantly above pre-pandemic levels. 'Draught volumes are performing strongly with Guinness being the standout performer. On the food front, breakfasts, terribly slow post-pandemic, have recovered their lustre and are now well ahead. Chicken, also, has put in a clucking good performance and volumes in recent weeks are up by about 50% compared to pre-pandemic levels.' Wetherspoon will report its preliminary results for the 52 trading weeks to July 27 on October 3. Shares closed up 2% or 15.5p at 795.5p.
Yahoo
2 days ago
- Business
- Yahoo
JD Wetherspoon shares rise as sunny weather and 'standout' Guinness sales boost pub trade
Shares in JD Wetherspoon (JDW.L) rose nearly 3% on Wednesday morning, after the pub chain said sales had overtaken pre-pandemic levels, with sunny weather boosting trade in the fourth quarter. In a pre-close trading update, released on Wednesday, JD Wetherspoon reported a 5.1% rise in like-for-like sales in the fourth quarter. Chairman Tim Martin said that the company "benefitted from favourable weather in the fourth quarter, so that profits are anticipated to be in line with market expectations, notwithstanding the high tax and labour increases for the hospitality industry, which have been widely reported." He said that sales volumes, "which were very slow post-pandemic, have recently overtaken pre-pandemic levels". "Wine, for example, has shown strong growth, with Villa Maria from New Zealand and Prosecco from Italy both shooting the lights out," Martin said. "Spirits have improved in recent months and whisky volumes are significantly above pre-pandemic levels." In addition, Martin said that draught volumes were performing strongly, highlighting Guinness as a "standout performer". As for food sales, he said that breakfasts, after being "terribly slow post-pandemic, have recovered their lustre and are now well ahead". Martin added that chicken had also put in a "clucking good performance and volumes in recent weeks are up by about 50% compared to pre-pandemic levels". JD Wetherspoons currently operates 794 pubs, having opened three and sold nine sites year-to-date. The operator said it had also opened five new franchise pubs so far this year, bringing the total to eight. Wednesday's trading update gives investors an idea as to what to expect when the company publishes its preliminary full-year results, which are due out on 3 October. Read more: Which Mag 7 stocks will be the top performers this earnings season? Derren Nathan, head of equity research at Hargreaves Lansdown, said that despite the impact of increased labour costs flagged by Martin, analyst forecasts expect JD Wetherspoon's operating profit to land "a little ahead" of last year at nearly £140m ($189.6m). "The group has been trimming the tail of its estate by dropping underperforming units and is now leveraging its efficient operating model and brand strength to grab further market share," he said. "Flagging consumer confidence remains a near-term threat but, overall, the JD Wetherspoon looks in good shape with the shares offering reasonable value, compared to the peer group." Dan Lane, lead analyst at Robinhood UK, said: "UK consumer confidence is on the up and just hit its highest point since December. If inflation resumes its downward journey after the summer and takes interest rates with it, JDW could get a further demand boost heading into the final stretch of the year." Chris Beauchamp, chief market analyst at IG, said: "The usual complaints about taxation notwithstanding, this was a very solid set of numbers from 'Spoons. Britons continue to rediscover the joy of a Wetherspoons breakfast, not least because of its competitive price, and with drinks volumes now above pre-pandemic levels the iconic chain seems well-placed to grow further, though an increase in the dividend in due course wouldn't go amiss." Read more: UK's rising debt cost puts Reeves and tax rises in spotlight London IPO fundraising slumps in blow to UK Bank of England governor warns Labour against watering down financial rulesSign in to access your portfolio
Yahoo
2 days ago
- Business
- Yahoo
JD Wetherspoon shares rise as sunny weather and 'standout' Guinness sales boost pub trade
Shares in JD Wetherspoon (JDW.L) rose nearly 3% on Wednesday morning, after the pub chain said sales had overtaken pre-pandemic levels, with sunny weather boosting trade in the fourth quarter. In a pre-close trading update, released on Wednesday, JD Wetherspoon reported a 5.1% rise in like-for-like sales in the fourth quarter. Chairman Tim Martin said that the company "benefitted from favourable weather in the fourth quarter, so that profits are anticipated to be in line with market expectations, notwithstanding the high tax and labour increases for the hospitality industry, which have been widely reported." He said that sales volumes, "which were very slow post-pandemic, have recently overtaken pre-pandemic levels". "Wine, for example, has shown strong growth, with Villa Maria from New Zealand and Prosecco from Italy both shooting the lights out," Martin said. "Spirits have improved in recent months and whisky volumes are significantly above pre-pandemic levels." In addition, Martin said that draught volumes were performing strongly, highlighting Guinness as a "standout performer". As for food sales, he said that breakfasts, after being "terribly slow post-pandemic, have recovered their lustre and are now well ahead". Martin added that chicken had also put in a "clucking good performance and volumes in recent weeks are up by about 50% compared to pre-pandemic levels". JD Wetherspoons currently operates 794 pubs, having opened three and sold nine sites year-to-date. The operator said it had also opened five new franchise pubs so far this year, bringing the total to eight. Wednesday's trading update gives investors an idea as to what to expect when the company publishes its preliminary full-year results, which are due out on 3 October. Read more: Which Mag 7 stocks will be the top performers this earnings season? Derren Nathan, head of equity research at Hargreaves Lansdown, said that despite the impact of increased labour costs flagged by Martin, analyst forecasts expect JD Wetherspoon's operating profit to land "a little ahead" of last year at nearly £140m ($189.6m). "The group has been trimming the tail of its estate by dropping underperforming units and is now leveraging its efficient operating model and brand strength to grab further market share," he said. "Flagging consumer confidence remains a near-term threat but, overall, the JD Wetherspoon looks in good shape with the shares offering reasonable value, compared to the peer group." Dan Lane, lead analyst at Robinhood UK, said: "UK consumer confidence is on the up and just hit its highest point since December. If inflation resumes its downward journey after the summer and takes interest rates with it, JDW could get a further demand boost heading into the final stretch of the year." Chris Beauchamp, chief market analyst at IG, said: "The usual complaints about taxation notwithstanding, this was a very solid set of numbers from 'Spoons. Britons continue to rediscover the joy of a Wetherspoons breakfast, not least because of its competitive price, and with drinks volumes now above pre-pandemic levels the iconic chain seems well-placed to grow further, though an increase in the dividend in due course wouldn't go amiss." Read more: UK's rising debt cost puts Reeves and tax rises in spotlight London IPO fundraising slumps in blow to UK Bank of England governor warns Labour against watering down financial rulesError in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Scotsman
2 days ago
- Business
- Scotsman
Something's proving ‘clucking good' as pubs giant Wetherspoon raises a glass to the Black Stuff
'Sales volumes, which were very slow post-pandemic, have recently overtaken pre-pandemic levels' – Sir Tim Martin Sign up to our Scotsman Money newsletter, covering all you need to know to help manage your money. Sign up Thank you for signing up! Did you know with a Digital Subscription to The Scotsman, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... JD Wetherspoon's founder and chairman Sir Tim Martin has hailed Guinness as a 'standout performer' in recent months while sales of chicken products have 'put in a clucking good performance' at the pubs giant. His comments came as the group said overall sales increased by 5.1 per cent in the 12 weeks to July 20, compared with the same period last year. Advertisement Hide Ad Advertisement Hide Ad The volume of sales recently overtook pre-pandemic levels, the company revealed, having previously flagged a slow recovery across its estate. Releasing a trading update ahead of its results in early October, the group - commonly referred to as Spoons - highlighted strong draught sales, particularly Guinness, as well as growth for wine and an improvement in spirits. JD Wetherspoon, commonly called Spoons, runs almost 800 pubs across the UK and Ireland, including Dunfermline's Guildhall & Linen Exchange within its Scottish portfolio. Picture: Scott Reid Guinness maker Diageo has consistently said demand for the famed Irish stout has been growing rapidly. Furthermore, the warm weather in recent weeks has boosted visitors, with a raft of Wetherspoon pubs benefiting from beer gardens. The group runs 794 pubs in the UK and Ireland, including the likes of the Caley Picture House in Edinburgh and Dunfermline's Guildhall & Linen Exchange. Advertisement Hide Ad Advertisement Hide Ad Martin - who founded the chain in the late 1970s with a single pub in Muswell Hill, London, naming the business after one of his teachers - said: 'Sales volumes, which were very slow post-pandemic, have recently overtaken pre-pandemic levels. Wine, for example, has shown strong growth, with Villa Maria from New Zealand and Prosecco from Italy both shooting the lights out. Spirits have improved in recent months and whisky volumes are significantly above pre-pandemic levels. The Caley Picture House on Edinburgh's Lothian Road is one of Spoons' largest venues. 'Draught volumes are performing strongly with Guinness being the standout performer. On the food front, breakfasts, terribly slow post-pandemic, have recovered their lustre and are now well ahead. Chicken, also, has put in a clucking good performance and volumes in recent weeks are up by about 50 per cent compared to pre-pandemic levels.' He added: 'The company has benefitted from favourable weather in the fourth quarter, so that profits are anticipated to be in line with market expectations, notwithstanding the high tax and labour increases for the hospitality industry, which have been widely reported.' Wetherspoon has previously warned it is facing a £60 million hit from the higher business costs. Nonetheless, the group has said it plans to invest in its pubs over the year ahead, including staff rooms and gardens, and hopes to open another 30 sites. Advertisement Hide Ad Advertisement Hide Ad Martin, who has been vocal on a range of matters including Brexit and Covid lockdowns, told investors: 'In the next financial year, as well as investing in areas such as staff rooms, glass racks for 'branded' glasses, and gardens, the company plans to open approximately 15 new managed pubs and about the same number of franchised pubs.' The generally upbeat news from Spoons came just a day after it emerged that BrewDog was to close ten of its bars, including its flagship venue in Aberdeen. The Scottish craft brewing giant said it has made efforts to preserve the sites, but it 'has simply not been possible to make these bars commercially viable'. Adam Vettese, market analyst for eToro, said JD Wetherspoon's latest update had served up a 'reassuring performance' as punters flock to its pubs during the recent favourable spell of weather. 'Still, it's not all plain sailing,' he added. 'The company continues to face a hangover from rising wage and tax costs, forecast to add around £60m a year to the bill, putting pressure on operating margins. Net debt is expected to edge up to £720m, as Wetherspoon invests in freeholds and refurbishments. Advertisement Hide Ad Advertisement Hide Ad 'While full-year profit guidance remains intact, it's clear that cost inflation is nibbling away at the group's bottom line.' Third Bridge analyst Alex Doran noted: 'Our experts say Wetherspoon is in a strong position as the UK pub sector steadies after a tough few years. The industry should see margin pressures ease slightly over time as operators improve labour efficiencies and embrace digital tools, but customers are still careful about spending. 'For Wetherspoon, its position as a value-led, wet-led operator with strong tech adoption continues to underpin its resilience. 'Wetherspoon's app for ordering and paying at the table has become a clear advantage. Customers like seeing what they are spending, and this helps them feel they are getting value for money. Advertisement Hide Ad Advertisement Hide Ad 'While many operators cut hours to save costs, Wetherspoon has stuck to being open, building trust with customers who know they can rely on the brand any day of the week. This has helped the business gain market share,' he added. Upbeat Richard Hunter, head of markets at investment platform Interactive Investor, said that what was a relatively brief trading update had revealed 'an upbeat tone'. He added: 'Wetherspoon has fought its corner for many years and has overcome some serious hurdles, but the outlook for the wider domestic economy and the higher levels of staff costs continue to weigh heavily. While the shares have been rewarded over recent months for the group's valiant efforts, which still leave the price undemanding in terms of valuation, the market consensus of the shares as a hold reflects some investor unwillingness to take the plunge just yet.' He noted that the group's share price remained some 54 per cent shy of the £16.94 achieved in December 2019.
