JD Wetherspoon sales rise by 5.6% in Q1

JD Wetherspoon has reported that like-for-like sales rose by 5.6% in the 13-week period to 27 April, with year-to-date like-for-like sales rising by 5.1%. 

Total sales only increased by 5% in the quarter, which is slightly less than like-for-like sales as the group opened two pubs and sold seven in the year-to-date.

The pub operator intends to open a further four or five pubs in this financial year, and approximately 10 pubs in the following financial year. 

Meanwhile, seven freehold reversions – where Wetherspoon was previously the tenant – have been acquired in the year-to-date at a total cost of £17m. The group currently operates a portfolio of 795 pubs. 

JD Wetherspoon currently anticipates year-end net debt of between £720m and £740m, with headroom – under existing facilities – of roughly £200m. 

Tim Martin, chairman of JD Wetherspoon, said: “The company’s main ambition, as always, is to improve its appeal to staff and customers. In this connection, for example, the company has invested in new staff facilities in 520 pubs (49 in the current year), including staff rooms and changing rooms, with approximately 270 planned for the future. The investment per pub is approximately £100k. 

“The product range for customers continues to evolve. For example, the company has recently introduced, nationwide, the highly regarded Jaipur traditional ale from the Thornbridge Brewery, as well as renowned international beer brands, Kronenbourg 1664 Biere and Poretti. As regards the menu, new initiatives include a gourmet burger offer, which has proved extremely popular in the pubs in which it has been trialled.”

He added: “Bearing in mind that recent trading has been helped by favourable weather, the company anticipates a reasonable outcome for the financial year, notwithstanding previously reported wage and tax increases of approximately £1.2m per week.”