JD Wetherspoon PLC (LSE:JDW) enjoyed faster growth at its pubs over the festive period, but said first-half profits would be down on last year due to higher costs than expected.
Executive chairman Tim Martin flagged a £45 million increase in costs during the first 25 weeks of the pub chain's financial year, reflecting higher energy costs, wages, repairs and business rates.
Like-for-like sales rose 4.7% in the 25 weeks to 18 January 2026, supported by strong momentum in the second quarter and a robust performance over the Christmas trading period.
The company reported a 6.1% rise in like-for-like sales in the second quarter and an 8.8% uplift during the three-week festive period from 15 December to 4 January.
This compares to the LFL sales growth of 3.7% in the first quarter.
Bar sales in the second quarter were up 6.9% and food sales grew 1.3%, while slot/fruit machine income increased 9.1%. Hotel room sales declined by 0.7%.
Martin said he was "pleased with the sales growth in the financial year, and with the increased momentum in the second quarter" but costs had been higher than anticipated.
"Profits in the first half are likely to be lower than the comparable period in the previous financial year,” he said.
"If the current sales momentum continues, the company currently anticipates a full year trading outcome slightly below that achieved in FY25."
The pub group has opened six new pubs in the year to date and sold six, resulting in a net cash inflow of £3.3 million and a total estate of 794 pubs.
Eight franchised pubs have also opened, taking the total to 16, with further openings planned, including the first site in mainland Spain at Alicante Airport.
The company has repurchased 2.77 million of its own shares at an average price of £7.22. Net debt is expected to be between £740 million and £760 million by the end of FY26.