JD Wetherspoon Plc shares gained as sales rise above pre-pandemic levels and the UK pub chain anticipates improved profit in the next financial year.
(Bloomberg) — JD Wetherspoon Plc shares gained as sales rise above pre-pandemic levels and the UK pub chain anticipates improved profit in the next financial year.
Revenue is up 11% on a like-for-like basis in the first 10 weeks of the company’s fourth quarter compared to the same period in 2019, the company said Wednesday. The stock rose as much as 6.8%.
The chain, led by Chairman Tim Martin, experienced high demand during the recent bank holiday period and posted record Easter sales in April, displaying the resilience of low-cost leisure despite stubborn inflation and a wider economic downturn.
JD Wetherspoon said the improved sales means its profit this financial year will be in line with expecatations and should improve further next year. The company said inflation is slowing for some costs such as energy.
“The firm should not go popping the champagne corks just yet,” wrote Adam Vettese, an analyst at eToro. “Households are still being clobbered by rising interest rates and higher inflation, which might affect consumer spending on things such as eating out and going to the pub.”
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.