JD Wetherspoon warns of profit hit despite strong Christmas

JD Wetherspoon has reported that like-for-like sales rose by 4.7% in the 25 weeks to 18 January, with growth accelerating in the second quarter of the year, but anticipates that rising costs will push profits below last year’s levels as costs have risen by £45m. 

During the half-year period, bar sales increased 6.9% and food sales rose 1.3%. Revenues from slot and fruit machines was up 9.1%, offset partly by a 0.7% fall in hotel room sales. Total sales were 5.3% higher year to date.

Trading was strongest over the main Christmas period, with like-for-like sales up 8.8% in the three weeks from 15 December to 4 January.

Interest costs for the 2026 financial year, excluding IFRS 16 notional interest, are expected to be about £47m, down from £49m a year earlier. Including IFRS 16, annual interest costs are forecast to be about £60m. Net debt at the end of the year is expected to be between £740m and £760m, compared with £724m at the end of FY25.

During the year to date, the company bought back about 2.8 million shares for cancellation at an average price of £7.22 a share.

Wetherspoon also opened six pubs in the period and expects to open 15 in total during the financial year. Six pubs were sold, generating a net cash inflow of £3.3m, leaving the company with a managed estate of 794 pubs.

The group has also opened eight franchised pubs so far this year, taking the total to 16, with a further 10 to 15 planned. These include its first site in mainland Spain, at Alicante Airport.

Tim Martin, chairman of JD Wetherspoon, said: “We are pleased with the sales growth in the financial year, and with the increased momentum in the second quarter. Costs have been higher than anticipated, with energy, wages, repairs and business rates, for example, increasing by £45m in the first 25 weeks.

“Profits in the first half are likely to be lower than the comparable period in the previous financial year. If the current sales momentum continues, the company currently anticipates a full year trading outcome slightly below that achieved in FY25.”

The company is due to publish its interim results for the six months to 25 January on 20 March.