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## JD Wetherspoon set to reveal Christmas trading performance amid budget pressures
JD Wetherspoon is expected to update the market on its christmas trading performance today, with investors keen to understand how the pub group navigated the crucial festive period and the impact of recent economic conditions.
Fuller’s recently highlighted strong food sales, as customers spent more on eating out around Christmas. Fuller’s reported a 17.8% increase in total sales for the 52 weeks to September 30, 2023, with like-for-like sales up 8.2%.
Investors in Wetherspoon will be particularly interested in how the value pub group fared in comparison, especially given subdued growth in food sales in the previous quarter.
In its previous update in November, Wetherspoon revealed that like-for-like sales lifted 3.7 per cent in the first 14 weeks of its financial year, to November 2, 2023.
It saw bar sales rise 5.7 per cent, food lift 0.9 per cent and sales from slot and fruit machines jump 8.9 per cent, but hotel room sales fell 6.3%.
The update comes after a period of economic uncertainty and following the Autumn Statement in November 2023.
Derren Nathan, head of equity research at Hargreaves Lansdown, said: “It’s the group’s first steer on numbers since the November budget.”
“Coming into the period, management exercised some caution over the outlook, but industry data suggest Christmas revellers were out in force.”
“In recent years, JD Wetherspoon has consistently outperformed the wider pub market and, with sentiment having strengthened since the company last addressed the market, investors look to be expecting more of the same.”
Frequently enough-outspoken founder and chairman Tim Martin is thus likely to address the current pressures facing the sector.
Pubs are facing increases to their business rates payments from next year due to higher property valuations in tax calculation following the autumn budget.The government initially ended hospitality tax relief, but has since announced a temporary relief measure.
The Labor government is now expected to announce more financial support measures for the industry following criticism over the upcoming rates increases. Shadow Chancellor Rachel Reeves has indicated Labour will review the business rates system if they win the next election.
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