Wetherspoon like-for-like sales rise 8.2% as it targets up to 25 more pubs

JD Wetherspoon has reported a strong start to its financial year, The Morning Advertiser reports. The figures cover the 14 weeks to 1 November.

The numbers: like-for-like sales rose 8.2%, with bar sales up 9.4%, food up 6.8% and machines up 7.1%. Hotel rooms fell 1.4%. Total sales rose 9.1%. Like-for-like growth slowed to 7.5% over the latest five weeks, from 8.6% in the first nine.

The market: the group says it beat the NIQ RSM Hospitality Business Tracker for the 49th month running. In September it grew 9.9% against 2.7% for the industry.

The estate: six managed pubs opened in the period and one was sold, leaving 797. It is aiming for up to 25 more openings this year across managed and franchised sites, including 10 to 15 franchised. It has 25 franchised pubs now. Net debt was £736m, down from £756m a year ago.

The warning: chairman Tim Martin said profit forecasts depend heavily on sales growth. He repeated concerns about employment costs and the VAT gap between pubs and supermarkets.

What it means for operators: the gap between one group and the market is wide, and it is being won on drinks. Check where your own bar mix sits against the trackers.