"While revenues have finally recovered to stand 17% higher than that period, the group has 85 fewer pubs. This results in sales per pub which have increased by 29%, but in terms of profit that progress has been largely obliterated by growth of 57.8% and 34.5% in energy and wage costs respectively. More broadly, the continuing closure of many pubs across the country opens opportunities for Wetherspoon, although the group is understandably cautious of opening any new pubs which may not meet its financial hurdles."
"JD Wetherspoon continues to outperform the wider UK pubs market, with revenues and profits rising year-on-year. At the heart of this success is the business's unique value proposition, which is resonating strongly with cost-conscious consumers. The group has also benefitted from the wider contraction in the pub sector, with the number of licensed premises down around 14% since the start of the pandemic."
JD Wetherspoon reported like-for-like sales up 51%, revenues rising 4.5% to £2.12 billion and profit before tax up 10.1% to £81 million. The company now operates 85 fewer pubs, producing a 29% increase in sales per pub. Rising costs have sharply affected margins, with energy costs up 57.8% and wages up 34.5%. The wider contraction in the pub sector has reduced competition and supported performance. Competitive pricing, diversified food and drink offerings, and continued capital investment underpin the business's appeal to cost-conscious consumers.
Read at London Business News | Londonlovesbusiness.com
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