JD Wetherspoon PLC (LSE:JDW) updates come with plenty of supporting commentary from founder and chairman Tim Martin, but this time the focus might just be on the numbers given the impressive performance of its pub group peers over Christmas.
Sales growth of 10% plus has been common in the five-week party season, with ‘exceptional’ and ‘very strong’ the typical descriptions of trading.
If Spoons can do as well remains to be seen, but having racked up record revenues last year, despite a reduction in the number of pubs, the omens look good.
Average takings also rose last year and JD Wetherspoon’s value proposition puts it in a resilient position in times of hardship.
After a period of reducing the estate by selling underperforming venues, the group has also begun opening new pubs again focused on locations in areas of high footfall, notes Hargreaves Lansdown.
Martin has already predicted widespread price rises across the entire hospitality sector in response to Labour’s Autumn Budget.
Wetherspoon forecasts that its annual taxes and business costs will increase by around £60 million, including a dramatic 67% increase in National Insurance Contributions.
"All hospitality businesses, we believe, plan to increase prices, as a result. Wetherspoon will, as always, make every attempt to stay as competitive as possible.”
Confirmation of how much prices are going up will be something to note.