JD Wetherspoon reports record sales despite a reduction in pubs

JD Wetherspoon has reported a surge in sales for its half year results, with revenue almost hitting £1bn.

For the 26 weeks ended 28 January 2024, like-for-like sales increased 9.9%, while revenue increased 8.2% to £991m.

Operating profit increased 81% £67.7m, while profit before tax surged 682% from £4.6m in the first half of 2023 to £36m.

Tim Martin, the chairman of J D Wetherspoon, was upbeat about the rest of the financial year, noting that sales had continued to improve in recent weeks.

“In the last seven weeks, to 17 March 2024, like-for-like sales increased by 5.8%,” he said. “The company currently anticipates a reasonable outcome for the financial year, subject to our future sales performance.”

He noted that, despite current record sales levels, there has been a reduction in the number of Wetherspoon pubs over the last decade.

Its fleet of pubs across the UK peaked in December 2015 with 955. It is currently trading from 814 sites.

But sales are around a third higher than in 2015, reads the report, with sales per pub increasing by 50% over the last decade.

The company estimates that there is scope for around 1,000 Wetherspoon pubs, while many of the successful existing sites could potentially be expanded by adding gardens or moving the customer area into adjacent buildings.

In February, the pub chain raised food and drink prices by an average of 3%.

Martin said the company had recovered “steadily” from the pandemic with sales at record levels, but the company continues to be worried about the “possibility of further lockdowns”, stating his concerns about the “efficacy of the government enquiry into the pandemic”.