JD Wetherspoon to open 30 new pubs as sales jump 5.1%
In the same period, Wetherspoon acquired eight freehold reversions – where it was previously a tenant – for £19m
JD Wetherspoon has reported a 5.1% rise in like-for-like sales in the 12-week period to 20 July, as it prepares to open roughly 30 new pubs in the next financial year.
The pub operator, which said like-for-like sales for the year-to-date also rose 5.1%, plans to release its full-year results on the 3 October.
JD Wetherspoon currently operates exactly 794 pubs, having opened three new pubs and sold nine in the year-to-date. It has also added five franchised pubs, bringing the total number of franchised sites to eight.
In the same period, Wetherspoon acquired eight freehold reversions – where it was previously a tenant – for £19m. The company also bought back more than 10.5m of its own shares for cancellation, at an average price of £6.26 each.
It said it expects year-end net debt to be about £720m, with around £220m of headroom under existing facilities.
According to chairman Tim Martin, the company had benefitted from favourable weather in the fourth quarter and expects full-year profits to be in line with market expectations, despite higher tax and labour costs for the hospitality industry.
Martin said: “In the next financial year, as well as investing in areas such as staff rooms, glass racks for ‘branded’ glasses, and gardens, the company plans to open approximately 15 new managed pubs and about the same number of franchised pubs.
“Sales volumes, which were very slow post-pandemic, have recently overtaken pre-pandemic levels. Wine, for example, has shown strong growth, with Villa Maria from New Zealand and Prosecco from Italy both shooting the lights out. Spirits have improved in recent months and whisky volumes are significantly above pre-pandemic levels.”
He added: “Draught volumes are performing strongly with Guinness being the standout performer. On the food front, breakfasts, terribly slow post-pandemic, have recovered their lustre and are now well ahead. Chicken, also, has put in a clucking good performance and volumes in recent weeks are up by about 50% compared to pre-pandemic levels.”
