J D Wetherspoon (LSE:JDW) reported a solid improvement in trading, with like-for-like sales up 4.7% for the 25 weeks to 18 January 2026. Growth was led by higher bar and gaming machine revenues, while hotel room sales were slightly lower. Total sales increased 5.3%, supported by a strong Christmas period and improving customer demand.
Despite the top-line momentum, profitability has come under pressure from sharply higher operating costs. The group said increases in energy, wages, repairs and business rates added around £45m to costs in the first 25 weeks of the year. As a result, first-half profits are expected to decline year on year, and full-year performance is currently forecast to come in slightly below FY25.
Wetherspoon continues to invest in expanding and upgrading its estate. Six new pubs have opened so far this year, with a total of 15 planned, while the franchised portfolio has grown to 16 sites. Further franchise openings are expected, including the group’s first mainland Spain location at Alicante Airport.
From a balance sheet perspective, net debt is projected to increase to between £740m and £760m, reflecting continued investment and ongoing share buybacks. While the shares are supported by favourable technical indicators and a reasonable valuation, elevated debt levels and historical cash flow volatility remain key considerations for investors.
More about J D Wetherspoon
J D Wetherspoon is a pub operator focused on the UK and Ireland, owning and managing nearly 800 pubs alongside a growing franchised estate. The group targets value-conscious customers with competitively priced food and drink, operating individually designed venues with an emphasis on well-trained staff and well-maintained premises, while also expanding selectively into new international markets such as mainland Spain.
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