JD Wetherspoon has today announced its full year results with like-for-like sales rose by 7.6%, or up 6.0% adjusting for bank holiday timing.
Total revenue rose 5.7% and profit before tax was up 73.5%. A full-year dividend of 12p was also declared.
Wetherspoons said there was also a solid start to the new financial year with like-for-like sales rising 4.9% in the first nine weeks.
Charlie Huggins, manager of the ‘Quality Shares Portfolio’ at Wealth Club, said, “Wetherspoons has enjoyed a good year, reporting a significant recovery in sales and profits and a return to the dividend register. With many pub and restaurant companies struggling in the current environment, this is an impressive performance.
Despite the challenging economy, consumers are still spending. However, they are becoming increasingly discerning. Wetherspoon’s commitment to low prices and doing the basics well are helping to keep punters loyal.
The backdrop still remains very difficult, with the rise in wages posing a considerable cost headwind for the sector. But Wetherspoons looks better placed than its rivals to shoulder this. With interest rates now starting to come down and inflation moderating, the outlook for the consumer also looks better than it has for some time.
In an environment where the strong seem likely to get stronger, Wetherspoons looks well placed to grow market share and sustain its recent sales momentum.”
