JD Wetherspoon issues third profit warning

Wetherspoons’ chair Tim Martin has said the pub group’s profits for its financial year ending to 19 July would be below market expectations.

This marks the pub operator’s third profit warning for its most recently completed financial year, having previously issued profit warnings in May and January.

In the 12 weeks to 19 July, Wetherspoons posted a 4% uplift in like-for-like sales and reported a 4.2% uplift in year-to-date sales on a like-for-like basis.

“Profits for the year are likely to be below market expectations, with marginally lower sales than anticipated in the final quarter, combined with higher costs in the areas of food, labour, repairs, energy and business rates,” said Martin.

The move comes after Wetherspoons confirmed to The Caterer that just five of its 793-strong managed pub network remained open for the England vs Mexico World Cup clash, despite government guidance which allowed pubs to stay open until 5am for the game.

During the financial year Wetherspoons opened eight new managed pubs and sold nine, alongside 15 new franchised pub openings, taking its total to 23.

Wetherspoons will release its full preliminary results on 2 October.