JD Wetherspoon’s sales are now exceeding volumes before Covid, as Britain’s pubs enjoy increased footfall in the summer sunshine.
Chairman Tim Martin told investors on Wednesday that sales of New Zealand wine and Italian prosecco have been ‘shooting the lights out’, while whisky volumes are ‘significantly above pre-pandemic levels’ as spirits prove increasingly popular.
He also cited Guinness as the ‘standout performer’ in draft volumes, while food sales have been boosted by improved breakfast sales and ‘clucking good’ demand for chicken.
It came as Wetherspoon’s reported like-for-like sales growth of 5.1 per cent for the 12 weeks to 20 July, with improved footfall credited to ‘favourable weather’.
The result chimes with updates from UK stock market listed rivals on Tuesday.
Fuller, Smith & Turner posted like-for-like sales growth of 5 per cent for the 16 weeks to 19 July, while Marston’s saw revenue growth of 2.9 per cent for the 15 weeks to 12 July.
Chairman Tim Martin told investors on Wednesday sales of wine from New Zealand and Prosecco form Italy have been ‘shooting the lights out’
Improved sales will be welcomed by a pub sector currently struggling against higher costs, largely driven by the introduction of higher employer national insurance contributions and a national living wage hike.
Energy bills also remain painfully high for businesses.
Martin said Wetherspoon’s profits are expected to be in line with market expectations this year, ‘notwithstanding the high tax and labour increases for the hospitality industry, which have been widely reported’.
Wetherspoon’s has opened three pubs and sold nine this so far this year, taking its total estate to 794 sites.
It forecasts year-end net debt to hit £720million, with headroom, under existing facilities, of approximately £220 million.
JD Wetherspoon shares are up by around 28 per cent since the start of the year.
UK lead analyst at Robinhood Dan Lane said: ‘The warm weather has clearly drummed up our thirst for prosecco and Guinness, in particular.
‘Lifting Wetherspoon’s volumes above pre-pandemic levels is an important milestone and it’s encouraging to see food items follow the trend too.
‘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.
‘The only glaring concern is the debt pile but, for now, the market clearly thinks it’s manageable enough to look past.
‘JDW’s share price performance in 2025 wouldn’t look out of place among the Magnificent 7 and, if pub openings, refurbished sites and fresh gardens do the trick and pull us in over the summer, like-for-like sales could get a boost heading into the new trading year.’
DIY INVESTING PLATFORMS
AJ Bell
AJ Bell
Easy investing and ready-made portfolios
Hargreaves Lansdown
Hargreaves Lansdown
Free fund dealing and investment ideas
interactive investor
interactive investor
Flat-fee investing from £4.99 per month
InvestEngine
InvestEngine
Account and trading fee-free ETF investing
Trading 212
Trading 212
Free share dealing and no account fee
Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.
This article was originally published by a www.dailymail.co.uk . Read the Original article here. .