JD Wetherspoon says profits for the year are likely to be below market expectations
Pub chain J D Wetherspoon has confirmed that profits for the year are likely to be below market expectations, dashing investors’ hopes of a World Cup boost.
Susannah Streeter, the chief investment strategist at Wealth Club, said Wetherspoon’s had been served a “toxic cocktail” of rising costs which shows little sign of losing its potency.
She added: “It’s forced the pub chain to issue its fourth profit warning of the year, unnerving investors and sending the shares sharply lower in early trade.
“Annual pre-tax profits had been expected to come in around £70 million, already well below last year’s £81 million, but even those forecasts now look too optimistic.
“Customers are still coming through the doors, with like-for-like sales continuing to grow, but the bars weren’t quite as busy as hoped in the final quarter.
“Even cheaper pints can only go so far in luring consumers who remain cautious about everyday spending.”
In a trading update, the group said that like-for-like sales increased by 4.0 per cent in the 12 weeks to 19 July 2026, compared with the same period last year. The year-to-date like-for-like sales increased by 4.2 per cent.
The chairman of Wetherspoons, Tim Martin, said: "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."
Ms Streeter said Wetherspoons is having to swallow a “bitter mix”, which continues to eat away at margins. These pressures are unlikely to disappear any time soon, she added.
“If conflict in the Middle East keeps disrupting global energy supply routes, higher wholesale energy prices will continue filtering through into transport and utility bills, leaving hospitality businesses facing another round of margin pressure just as hopes had been growing that the cost squeeze was beginning to ease,’’ she said.
“While the government’s cost-of-living measures may offer households some breathing space, companies remain exposed to volatile commodity markets and stubborn domestic costs.
“Business rates have long been one of chairman Tim Martin’s biggest gripes, and despite reforms to the system this year, they remain another headwind for large pub operators already grappling with rising wage and energy bills.”
Richard Hunter, Head of Markets at interactive investor, commented: “While others in the sector have been hailing a boost to sales from the impact of the World Cup and generally warm weather, Spoons has apparently not joined the party.”
"There may be a slight positive in terms of year-end net debt, which is now estimated to land at £720 million, versus previous guidance that it would be in a range between £740 and £760 million.”
He continued: “Wetherspoon’s dogged determination to fight its corner has won the brand many friends, but from an investment perspective the jury remains out on prospects. The group’s value model leaves it continually bumping up against a wall of higher costs, which puts perennial pressure on margins and profits.”