JD Wetherspoon PLC (LSE:JDW) has reported strong like-for-like sales growth over the Christmas period as the chain said it continues to outperform the industry.
Like-for-like sales over the last 12 weeks have climbed by 11.1%, Wetherspoon reported in a pre-close update on Wednesday, and by 10.1% over the first six months ending 28 January 2024.
In December, like-for-like sales growth sat at 15.2%, compared to the wider industry’s 8.8%, as per figures from Coffer CGA Business Tracker.
This meant Wetherspoon had outperformed the sector in 16 consecutive months, the pub said.
Debt and interest costs over the full year will likely be in line with 2023, at £642 million and £51 million respectively, with Wetherspoon operating 814 pubs as of 21 January.
"Wetherspoon, like the hospitality industry, has seen a consistent but slow recovery, following the pandemic,” chairman Tim Martin commented.
“Although inflation is, in general, reducing, labour and energy costs are far higher than pre-pandemic.”
Martin also highlighted that pubs face higher labour costs than supermarkets in terms of sales.
"The inevitable consequence is that increased labour costs raise the differential in prices between the hospitality industry and supermarkets,” he said.
"At the same time, pubs pay far higher value-added tax and business rates than supermarkets, further exacerbating the price disparity.”
Trading is set to be as expected for the full year, he added, with the pub chain due to unveil full interim results in March.