JD Wetherspoon Shares Rise as Sales Continue Recovery

Investors reacted positively to J D Wetherspoon's (LON: JDW) trading update for the 13-week period ending April 28 on Wednesday. The update indicated a steady recovery in sales following pandemic-induced challenges, helping push the company's shares almost 3% above Tuesday's close.

During the specified period, like-for-like sales rose by 5.2% compared to the same quarter last year. The year-to-date (YTD) figures also demonstrated robust growth, with like-for-like sales increasing by 8.3%. Total sales saw a notable uptick of 3.3% in the quarter and 6.5% YTD.

The company reported a net debt of £685 million as of April 28, 2024.

Chairman Tim Martin expressed optimism about the sales trajectory, noting the steady recovery from the pandemic. He highlighted the resurgence of traditional ales, particularly brands like Abbot Ale, Ruddles Bitter, and Doom Bar, along with ales from small and microbreweries. 

Martin also pointed out the increasing popularity of Guinness among younger generations.

Additionally, wine sales showed positive momentum, while Lavazza coffee sales witnessed growth. Martin also mentioned the promising start of their new menu, with favourable comparisons to respected competitors by reviewers.

Looking ahead, the company anticipates profits for the current financial year to be towards the top end of market expectations, signaling confidence in its ongoing recovery and growth trajectory.

Barclays reinstated shares of JDW at Overweight with an 875p price target in April. An analyst at the bank said the company's investment is near record highs, and sector supply is benign.