Wetherspoons hails 'record' sales, highlights rising costs

In an update for the 14 weeks to 3 November, the company said sales like-for-like sales rose 5.9% on the same period a year earlier. Bar sales were up 5.7%, food by 5.7% and slot/fruit machines by 13.5%. Hotel room sales dipped 2%.

Wetherspoons said total sales have grown 4.6% in the year to date, less than LFL sales, as a result of a small number of pub disposals.

The chain also said that following the Budget last month, taxes and business costs are expected to rise by around £60 million, on an annualised basis, in calendar year 2025, including an estimated 67% increase in national insurance contributions.

Chairman Tim Martin said: "The company achieved record sales in the 14-week period and staff retention continues to be at high levels.

"Cost inflation, which had jumped to elevated levels in 2022, slowly abated in the following two years, but has now jumped substantially again following the budget.

"All hospitality businesses, we believe, plan to increase prices, as a result. Wetherspoon will, as always, make every attempt to stay as competitive as possible.

"The company is confident of a reasonable outcome for the year, although forecasting is more difficult given the extent of the increased costs."

At 1005 GMT, the shares were up 3.2% at 617p.

Russ Mould, investment director at AJ Bell, said: "Wetherspoons may be feeling the squeeze on costs but sales are doing quite nicely. Unsurprisingly, the company has quite a lot to say about the Budget and it’s clear that any benefit from a cut in draught duty will quickly be swallowed up by higher staffing costs as the impact of the National Insurance changes and increase in the national living wage bite.

"The company continues to do well in an environment when its low-cost credentials for food and drink remain in high demand, handily outperforming the wider industry. It is opening new sites and there are reasons for optimism despite the hit from cost inflation. The test will be how much of the extra costs the company can pass on, without diluting demand."