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Investing.com -- J D Wetherspoon PLC (LON:JDW) reported a 3.7% increase in like-for-like sales for the 14 weeks to November 2, with bar sales rising 5.7% and total sales growing 4.2% year-to-date.
The pub chain has outperformed the CGA RSM Hospitality Business Tracker for 37 consecutive months, with September figures showing Wetherspoon’s 3.4% growth compared to the industry average of 0.2%.
The company has opened four new pubs since the start of its financial year in locations including Kenilworth, Paddington Basin, London Bridge Station, and Basildon. It plans to open a total of 15 pubs during the current financial year.
Wetherspoon’s franchise operations have expanded to 11 locations, with three new franchises opening in the year-to-date. The company expects to add 12 more franchised locations this financial year.
Chairman Tim Martin expressed concerns about several issues affecting the pub industry, including energy prices, nuclear power development, corporate governance rules, and the pricing differential between pubs and supermarkets.
Martin highlighted that a 10% wage increase adds approximately 15 pence to the cost of a pint in pubs compared to just 1.5 pence in supermarkets. He also noted that pubs pay 20% VAT on food sales while supermarkets pay none, contributing to pubs losing 50% of their beer volumes to supermarkets since 2000.
While pleased with continued sales momentum, Martin expressed caution about the outlook for the remainder of the year ahead of the Chancellor’s upcoming Budget statement.