In its latest pre-close trading update, JD Wetherspoon has reported profits are likely to be “below market expectations” for the past year, despite a four percent increase in sales during the 12 weeks to 19 July, and a 4.2 percent increase in year-to-date like-for-like sales.
JD Wetherspoon has issued its fourth profit warning in seven months, warning that despite a 4 percent increase in like-for-like sales during the 12 weeks to 19 July and a 4.2 percent increase in year-to-date like-for-like sales, higher costs have undercut growth.
In a brief pre-close trading update published on 22 July, the pub giant highlighted the impact of increased food, labour, rates and energy costs on its financial position, prompting a 10 percent dip in the company’s share price.
“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 chair Tim Martin.
Preliminary results are due to be released on 2 October, however the update outlined several key areas of the group’s performance over the past 12 months.
“In the year to date, the company has purchased 6,402,368 of its own shares for cancellation at an average price of £6.52 a share.”
“In addition, the company has purchased the freehold reversions of four pubs for a total of £12.2m, bringing the expenditure on freehold reversions since 2011 to £489m. We currently anticipate year-end net debt to be £720m, in line with the end of the last financial year.”
Responding to the update, Interactive Investor’s head of markets Richard Hunter said: “Spoons has been dealt some difficult hands over the years, which, for the most part, it has been resolute in turning into profit. However, this year has compounded some earlier difficulties.”
“The different tax treatment of alcohol sales in supermarkets is a case in point, alongside wrongly applied business rates.
Originally published on Coinslot on July 27, 2026. Republished with permission.