JD Wetherspoon (LSE: JDW) announced a positive trading update for the 13 weeks ending 28 April 2024.
Like-for-like sales increased by 5.2%, with a 6.0% rise after adjusting for bank holiday timings. Year-to-date, like-for-like sales are up by 8.3%.
The company expects profits for the current financial year to be near the high end of market expectations. The positive outlook is credited to moderating inflation and a value proposition that continues to attract customers. Despite high interest rates, Wetherspoons’ focus on low prices and strong customer service appears to be resonating with budget-conscious consumers.
The news comes as many pub and restaurant chains face challenges. Wetherspoons is well-positioned to gain market share in this environment, potentially continuing its profit recovery as costs begin to decrease.
The company’s share price rose 2.8% on Wednesday morning following the announcement.
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