Shares in JD Wetherspoon PLC (LSE:JDW) bubbled to a one-year high as the pub group said favourable weather had enabled profits to be in line with market expectations for the year.
A 5.1% rise in like-for-like sales in the 12 weeks to 20 July was down from 5.6% in the previous quarter, but precisely matched the growth rate for the full 12-month period.
Chairman Tim Martin said: “The company has benefitted from favourable weather in the fourth quarter, so that profits are anticipated to be in line with market expectations, notwithstanding the high tax and labour increases for the hospitality industry, which have been widely reported.”
There were none of his often-seen rants, with Martin seeming to be in a good mood as he raised a glass to sales volumes recently overtaking pre-pandemic levels, including wine "shooting the lights out", spirits and draught beer too, with Guinness being the "standout performer", as well as chicken meals putting in a "clucking good performance".
In the year-end update, ahead of final results scheduled for early October, the company confirmed that it opened three pubs and sold nine so far this year, bringing its estate to 794 pubs, with five new franchised pubs added too.
In the coming financial year, Martin said the plan is to open around 15 new managed pubs and "about the same number" of franchised outlets.
Year-end net debt is anticipated to be around the bottom of its previous £720-740 million range, offering headroom under existing facilities of roughly £220 million.
The shares rose 2.9% to 802.9p, their highest in over a year.
Broker Shore Capital said it was a "solid" trading update, with "robust" LFL sales growth and "what seems like more ambition" on growth of the estate.
** Update: Adds share price details, broker comment **