JD Wetherspoon PLC (LSE:JDW)’s interim results for the first half of the year surpassed Jefferies' expectations, with the iconic pub chain’s earnings coming in slightly ahead of the investment bank's estimates.
Wetherspoon reported robust revenues of £991 million, outperforming Jefferies' forecast of £940.5 million, while profit before tax of £36 million exceeded the anticipated £34.1 million.
The company's like-for-like sales grew by 9.9%, with specific categories such as bar sales and food witnessing significant increases.
“We argue that Wetherspoon's low relative price positioning and well-located/well-invested premises will gain market share and benefit from trading down," Jefferies analysts said.
The brokerage maintains a 'buy' rating on JD Wetherspoon stock with a target price of 925p.
Despite the decent set of interim results, ‘Spoon’s shares fell more than 9% on Friday, bringing the price down to 726p.