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Fri 20th Mar 2026 - Update: JD Wetherspoon reports like-for-likes up 2.6% in past seven weeks but warns profits set to be hit |
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JD Wetherspoon reports like-for-like sales up 2.6% in past seven weeks but warns costs and consumer pressures set to hit profits, hints at price rises: JD Wetherspoon has seen like-for-like sales in the seven weeks to 15 March 2026 increase 2.6% but warned cost increases combined with “clearly considerable pressure on consumer finances” may result in profits that are “slightly below current market expectations”. Chairman Sir Tim Martin said: “The latest CGA RSM Hospitality Business Tracker for February 2026 said industry like-for-like sales were down 0.2%. During this period, Wetherspoon like-for-like sales were up 3.2%. This was the 42nd month in a row that Wetherspoon has outperformed the tracker. As previously indicated, increases in national insurance and labour rates will result in cost increases of approximately £60m per annum, and non-commodity energy costs will add £7m. The extended producer responsibility tax, a levy on packaging will cost £2.4m in the current year, an increase of £1.6m. These cost increases will undoubtedly add to underlying inflation in the UK economy, although Wetherspoon, as always, will endeavour to keep price increases to a minimum. There is clearly considerable pressure on consumer finances, combined with higher taxes, wages and energy costs for the hospitality industry. This may result in profits that are slightly below current market expectations. The forecast for year-end net debt remains unchanged.” Total sales for the 26 weeks to 25 January 2026 were a record £1,087m, a 5.7% increase on last year’s figure of £1,030m. Like-for-like sales were up 4.8% compared with the year before. Like-for-like bar sales increased 7.0% on last year while like-for-like food sales were up 1.3% and slot/fruit machine like-for-like sales increased 8.9%. Like-for-like room sales for hotels declined 0.6%, following the removal of third-party, online booking agents in the UK. Profit before tax and separately disclosed items was down 31% to £22.4m (2025: £32.9m). Operating profit, before separately disclosed items, fell 18% to £52.9m (2025: £64.8m). Operating margin, before separately disclosed items, was 4.86% (2025: 6.30%). The company stated: “The hospitality industry has struggled in the aftermath of the pandemic. Wetherspoon sales in the first half of FY26 were £1,088m a 22% increase (£198m) compared with the pre-pandemic first half of FY19. At the same point in FY19, the company had 85 more pubs, so sales per pub were 35.4% higher in the period under review – above inflation. However, costs of energy (up 80.0%) and wages (up 61.1%), for example, which have a major influence on almost all input prices, rose more than sales. In addition, substantial tax and cost increases have been imposed on the hospitality industry, including a plethora of stealth taxes (non-domestic electricity charges; climate change levies; packaging charges etc), by recent governments, so that profits are still below pre-pandemic levels.” In the period, the company sold or closed six pubs. This gave rise to a cash inflow of £3.3m. The company opened six managed pubs – with 794 open at the period end. Eight franchised pubs opened in the period, bringing the total number to 16. The company said it anticipates opening approximately 15-20 franchised pubs in the current financial year. Franchised pubs have “performed well, with encouraging sales levels”. Net debt, excluding IFRS-16 lease debt, was £772.9m at the period end (27 July 2025: £724.3m). The company has total available finance facilities of £938.0m. Total capital investment was £45.3m (2025: £64.6m). A total of £12.3m was invested in new pubs and pub extensions (2025: £10.4m), £18.3m in existing pubs (2025: £34.7m), £2.7m in business and IT projects (2025: £6.0m) and £12.0m in freehold reversions of properties where Wetherspoon was the tenant (2025: £13.6m). Sir Tim added: “Very recently, the leader of the leading party in the opinion polls promised, in effect, tax parity with supermarkets – an amazing result for the now-defunct VAT Club. Indeed, this support for reduced VAT has been echoed recently, in terms, by the former deputy prime minister, a Labour MP. Pragmatic former VAT Club members are politically agnostic – all we ask for is tax equality. However, counterintuitive though it may be, once again, there has been either hostility or indifference from key areas of the pub industry, with virtually no clarion calls supporting these political initiatives for tax parity. So, let’s prepare for a future film about the demise of pubs, perhaps called, ‘Deathwish in the Boardroom’, which will delve into the psychology of pub company directors who refused to back calls for tax equality with supermarkets.”
Premium Club subscribers to receive next Who’s Who of UK Hospitality today: The next Who’s Who of UK Hospitality will be released to Premium Club subscribers today (Friday, 20 March), at midday. Another 67 companies have been added to the database, which now features 1,493 companies. This month’s edition also includes 172 updated entries. The companies, listed in alphabetical order, will have their most recent developments reported as well as broader information around Ebitda, plans and trading style available. The database merges Companies House information, interviews and other public information to provide an easy to reference and exhaustive guide to the sector. Premium Club subscribers also receive access to five other databases: the Turnover & Profits Blue Book, the Multi-Site Database, the New Openings Database, the UK Food and Beverage Franchisor Database and the UK Food and Beverage Franchisee Database. All Premium Club subscribers will be offered a 20% discount on tickets to Propel paid-for events and discounts on specialist sector reports. Operators that are Premium Club subscribers are also able to send up to four members of staff to each of our four Multi-Club Conferences for free. Premium Club subscribers receive their daily Propel Info newsletter 11 hours earlier than standard subscribers, at 7pm the evening before. They also receive videos of presentations at eight Propel conference events two weeks after they are held. This represents around 100 videos of industry insight over the course of the year. Premium Club subscribers also receive exclusive opinion columns every Friday at 5pm, which include the thoughts of Propel chief operating officer – editorial, Mark Wingett, and a host of industry leaders from across the sector. A Premium Club subscription costs an annual sum of £495 plus VAT for operators and £595 plus VAT for suppliers. Companies can now have an unlimited number of people receive access to Premium Club for a year for £995 plus VAT – whether they are an operator or supplier. Email kai.kirkman@propelinfo.com today to sign up.
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