Wetherspoons – profit seen towards the top end of expectations

J D Wetherspoon has today announced trading update for the 13-weeks to 28 April.

Like-for-like sales rose by 5.2%, or up 6.0% adjusting for bank holiday timing
Year-to-date like-for-like sales are up 8.3%
The group expects profit in the current financial year to be towards the top end of market expectations
Charlie Huggins, manager of the ‘Quality Shares Portfolio’ at Wealth Club, commented:

“Wetherspoons seems to be moving in the right direction, following a difficult few years. Like-for-like sales are growing and profits are expected to come in towards the top end of expectations.

Wetherspoons is being helped by moderating inflation combined with a proposition that is clearly resonating with the consumer.

Despite higher interest rates, consumers are still spending. However, they are becoming increasingly discerning. Wetherspoon’s commitment to low prices and doing the basics well are helping to keep punters loyal.

With many pub and restaurant companies struggling there is an opportunity for Wetherspoons to gain share in the current environment. With costs also coming down, it looks well set to continue its profit recovery.”