Wetherspoons to reveal strength of consumer demand amid inflation
The pub chain is expected to post another rise in sales as Britons enjoyed drinking in the warmer summer weather.
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Your support makes all the difference.Pub chain Wetherspoons is set to shed light on cost inflation and customer spending habits in an update to the markets next week.
The firm, which runs 834 pubs across the UK, is expected to post another rise in sales as Britons enjoyed drinking in the warmer summer weather.
Investors will be hopeful that the budget pub group could also be a beneficiary of higher pricing elsewhere across the hospitality sector, which has absorbed jumps in the costs of energy, labour and food and drink over the past year.
Wetherspoons is to provide shareholders with a fresh update on trading on Wednesday July 12.
In its previous announcement in May, the company predicted record sales for the current year as it cheered a strong recent sales performance.
Founder and chairman Tim Martin said “positive momentum” continued into spring but nevertheless warned of continued pressure on the hospitality sector from higher costs.
Like-for-like sales jumped 12.2% over the three months to April 30, Wetherspoons announced in May.
Shareholders will be hopeful that the group has maintained this significant sales growth or even seen an acceleration as Britons enjoy the warmer weather and holidays.
Analysts have suggested the firm is in a strong position to continue growth despite pressure on household budgets.
Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: “As punters feel the pinch, JD Wetherspoon has been mopping up new business, as it’s managed to keep prices lower to pull in the crowds.
“Investors will be keen to see if the surge in sales at Easter flowed into better trading for the rest of the year.”
Bosses at the company will also provide more information on whether food and drink inflation is abating and helping its cost pressure ease.
In recent weeks, supermarket bosses at Tesco and Sainsbury’s have both pointed towards falling inflation for food and drink.
However, the latest CGA foodservice index indicated that hospitality food inflation surprisingly increased in May, striking 21.6% against the same month last year.
Shareholders will be hoping the chain’s significant buying power will mean it has been able to keep a lid on this significant cost inflation.
Shares are around 40% higher since the start of 2023.