JD Wetherspoons reports its pre-close update on Wednesday, further highlighting the effects soaring costs have had on the pub & restaurant firm.
Food & drink inflation has remained stubbornly high this year, although small signs of inflation easing suggest improvements for the sector. Supermarket chain Sainsbury’s recently commented on a noticeable fall in food inflation, suggesting improvements for retailers that have faced significant costs over the last year.
Previous results for Wetherspoons saw like-for-like sales up 9.1%, as well as the group commenting on sales being a record in the current financial year. Prior lockdowns and restrictions have led to a strong bounce back in this sector, with sales continuing to outperform.
However, the Chairman of JD Wetherspoon, Tim Martin, commented on issues of inflation across labour, energy and food costs, stating political parties should do more to “encourage free enterprise.” However, the company still expects profits for the financial year to be towards the top end of market expectations.
Wetherspoons’ shares have traded well over the last six months, gaining 43% so far this year. However, its shares still remain significantly below their pre-pandemic heights.
By James Fyeman