Pub chain J D Wetherspoon (JDW, ) has reported a trading update for Q3, experiencing its strongest ever Easter week, with full-year sales now expected to break records.
In the 13-week period up to 30 April 2023, like-for-like sales were up 9.1% compared to the same period in the pre-pandemic 2019 financial year. Year-to-date sales also saw a significant increase of 6.4% compared to the previous year.
The company experienced its highest ever sales during Easter week, with current financial year sales likely to break records. Compared to the same period in the previous year, like-for-like sales increased by 12.2% in Q3 and by 12.7% year-to-date.
The recent bank holiday weekends also had an impact on sales, with the May bank holiday proving exceptionally strong, including the company's busiest ever Saturday.
The company reported financial headroom of £241m at the end of the quarter.
View from Vox
Wetherspoon has adeptly navigated through a range of external challenges and emerged even stronger than its pre-pandemic performance. Additionally, the company's revenues have been helped along by increases in food and drink prices.
Looking to the year ahead, while the cost of living squeeze continues to be felt by consumers, Wetherspoon can be a more affordable alternative and entice new customers to switch from competing establishments. Adding to this is decreased competition post-pandemic following the failure of many smaller operators, which further contributed to Wetherspoon's success in the period.
As the year unfolds, the company will still have to navigate rising interest rates and diminished consumer confidence, but its value proposition should maintain its momentum for the rest of 2023 and beyond.
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