J D WETHERSPOON PLC
Trading Update Announcement
J D Wetherspoon plc (the “company”) today publishes its scheduled trading update announcement for the 14 weeks to 3 November 2024, comprising quarter one (Q1) and a further week.
Current trading
Like-for-like (LFL) sales in the first 14 weeks of the financial year were 5.9% higher than the same period last year. Bar sales increased by 5.7%, food by 5.7% and slot/fruit machines by 13.5%. Hotel room sales decreased by 2.0%.
Total sales have grown by 4.6% in the year to date, less than LFL sales, as a result of a small number of pub disposals.
The “CGA RSM Hospitality Business Tracker” reports monthly LFL sales for a number of multi-outlet pub and restaurant companies.
In August, the tracker reported industry LFL sales of +1.3%, compared to +4.1% for Wetherspoon.
In September, the latest month for which information is available, the tracker reported industry sales of +1.7%, compared to +5.7% for Wetherspoon.
Wetherspoon has outperformed the tracker for 25 consecutive months.
Property
In the year-to-date, the company has opened two pubs – in Marlow, Buckinghamshire and at London Waterloo station. The company plans to open a total of nine pubs in the year, including sites at London Bridge station, Fulham Broadway underground station and Manchester Airport.
Five pubs have been sold in the year, giving to rise to a cash inflow of £2.4 million. The company currently has a trading estate of 797 pubs.
Franchises
Three pubs now operate as Wetherspoon franchises.
The first of these, at Hull University student union, opened in January 2022. Sales have approximately doubled compared to the pre-franchise history.
The second, at Newcastle University student union, opened in September 2023, and sales increased approximately fourfold in the first year.
The most recent franchise opening was at Haven Primrose Valley Holiday park, Filey, North Yorkshire in March 2024, where trading has been encouraging, and we are reviewing plans with Haven to introduce Wetherspoon to more parks in 2025 and beyond.
Costs
Following the government budget of 30 October, taxes and business costs are expected to increase by approximately £60 million, on an annualised basis, in calendar year 2025, including an estimated 67% increase in national insurance contributions.
Outlook
Wetherspoon chairman Tim Martin said:
“The company achieved record sales in the 14-week period and staff retention continues to be at high levels.“
“Cost inflation, which had jumped to elevated levels in 2022, slowly abated in the following two years, but has now jumped substantially again following the budget.“
“All hospitality businesses, we believe, plan to increase prices, as a result. Wetherspoon will, as always, make every attempt to stay as competitive as possible.“
“The company is confident of a reasonable outcome for the year, although forecasting is more difficult given the extent of the increased costs.”