JD Wetherspoon PLC (LSE:JDW) reported steady sales growth in the past quarter but warned rising costs could leave profits slightly below market expectations.
The pub group said like-for-like sales rose 3.4% in the 13 weeks to 26 April, with total sales up 4.1%. Year-to-date, like-for-like sales increased 4.3%, while total sales rose 4.9%.
Chairman Tim Martin said sales growth had outperformed the wider hospitality market for 43 consecutive months, though third-quarter growth was slightly below the year-to-date trend.
"As many hospitality operators, including Wetherspoon, have reported, there have been substantial increases in costs, which may result in profits slightly below market expectations," he said.
The company continues to expand its estate, opening eight pubs and selling eight so far this year.
It now operates 794 managed sites, alongside 21 franchised pubs, with further openings planned at major transport hubs including airports and central London stations.
Wetherspoon said it expects year-end net debt of between £740 million and £760 million, with annual interest costs of about £47 million, broadly unchanged on last year.