Wetherspoon’s issues fourth profit warning in seven months
Summary
JD Wetherspoon has issued its fourth profit warning in seven months, blaming lower sales and rising costs for food, workers, energy, and taxes. Despite the World Cup, sales did not meet expectations, and the company now expects profits to be below forecasts.Key Facts
- JD Wetherspoon runs 793 pubs in the UK and Ireland.
- The company warned profits would be lower than expected when it reports full-year results in October.
- Like-for-like sales increased only 4% in the 12 weeks ending July 19, less than hoped.
- Rising costs for food, labor, repairs, energy, and business rates are pressuring profits.
- The timing of World Cup games with late kick-offs made it harder for pubs to attract customers.
- UK minimum wage and business rate increases started in April, adding to cost pressures.
- The company expects net debt to be about £720 million, similar to last year’s level.
- External factors like energy price rises linked to the US-Israel conflict have affected costs.
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