Marston’s PLC (LSE:MARS), the pub and hotel group, jumped close to 4% on Wednesday morning after it reported what Shore Capital believes is “better than expected trading” in the year to date.
Unchanging its outlook, the capital markets group said the strong trading balances out “an uncertain consumer outlook”.
Sales rose by 10.9% on a like-for-like basis in the sixteen weeks to July 22 when compared to a year before, a trading update by the company revealed.
Similarly, revenues rose by 10.7% in the first nine-and-a-half months of trading in the 2023 financial year.
Warm weather and strong food and drink sales at the company’s pub estate largely drove the success, according to the London-listed hospitality group.
Chief executive Andrew Andrea commented: “We are making good progress and are beginning to see the benefits of the actions we have taken in the first half, simplifying our trading formats and repositioning our pub portfolio, as well as the investments we have made in our pub gardens and outside trading areas.”
Having successfully rolled out 13 food-led franchises over the last year, Marston’s will now extend the franchise-style model to an additional 50 venues over the next financial year.
“Marston's pioneered the operator-managed agreement in 2009, which now operates in over 700 wet-led pubs, and we are pleased to lead the evolution of this format and are excited about its future growth potential for our business,” Andrea added.
Shore Capital Group (LSE:SGR) rates Marston’s a ‘buy’ with a 150p target for the stock.
Shares in the group are trading at around 33p, down more than 15% year-to-date.