Wetherspoon shares sink as warns profit may fall short of market view
JD Wetherspoon PLC on Friday said that annual profit could fall short of market expectations, as the pub firm grapples with higher costs and warned that there is ‘considerable pressure on consumer finances’.
Shares in the company slumped 10% to 556.50 pence each in London on Friday morning.
The Watford, England-based firm said like-for-like sales growth has slowed in recent weeks, though it noted it has continued to outperform the wider hospitality market.
In the half-year ended January 25, pretax profit slumped 37% to £26.0 million from £41.3 million 12 months prior. Revenue, however, climbed 5.7% on-year to £1.09 billion from £1.03 billion.
Operating costs were 7.1% higher at £1.03 billion from £966.5 million.
On an adjusted basis, pretax profit was 32% lower on-year at £22.4 million from £32.9 million.
Like-for-like sales during the period rose 4.8% from a year prior. However, in the seven weeks to March 15, like-for-like growth has eased to 2.6%. In February, a sector measure, the CGA RSM Hospitality Business Tracker, showed industry like-for-like sales were 0.2% lower. Wetherspoon, however, saw like-for-like growth of 3.2%, the ‘42nd month in a row’ that it has outperformed, Chair Tim Martin said.
Martin warned, however: ‘As previously indicated, increases in national insurance and labour rates will result in cost increases of approximately £60 million per annum, and non-commodity energy costs will add £7 million. The ’extended producer responsibility’ tax, a levy on packaging will cost £2.4 million in the current year, an increase of £1.6 million. 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.’
Extended producer responsibility rules mean firms must pay fees for packaging they supply to or import into the UK.
Reuters reported that adjusted pretax profit consensus stands at £81.1 million. In financial 2025, it reported adjusted pretax profit of £81.4 million.
Wetherspoon maintained its half-year dividend at 4.0 pence per share.
Copyright 2026 Alliance News Ltd. All Rights Reserved.