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Food & drink

JD Wetherspoon nudges higher as it lifts full-year expectations once again

“Although there are still 7 weeks left of the current 53-week financial year, we anticipate a slightly better trading outcome than was foreseen at the last update”

Shares in JD Wetherspoon PLC (LON:JDW) edged higher on Tuesday afternoon after the British pub chain lifted its full-year expectations for the second time in as many months.

In a short stock exchange announcement, Wetherspoon said that the recent sales performance had been slightly better-than-expected.

“Although there are still 7 weeks left of the current 53-week financial year, we anticipate a slightly better trading outcome than was foreseen at the last update,” the company said.

The press release had echoes of a previous statement from the FTSE 250-listed group at the start of May, in which it said that trading so far in 2017 had been better than originally forecast.

Given the well-documented rising costs Spoons has faced of late (business rates, utility taxes, excise duty and labour costs), the pub, restaurant and hotel chain reckons it needs like-for-like sales growth of 3% to 4% next year to maintain profits at this year’s levels.

Wetherspoon said it would further update the market in a pre-close trading statement on 12 July.

Shares added 2.7% in the afternoon to trade at 991.5p.

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