(Sharecast News) - Pub chain JD Wetherspoon said on Wednesday that like-for-like sales rose 8.2% in the first 14 weeks of the financial year, with total sales up 9.1%, as the group continued to outperform the wider hospitality sector.
Bar sales increased 9.4%, food sales rose 6.8% and slot and fruit machine revenues were 7.1% higher, outweighing a 1.4% decline in hotel room sales. Wetherspoons said recent trading remained robust, although growth eased slightly to 7.5% in the most recent five weeks from 8.6% in the first nine weeks of the period. Net debt stood at £736m at the end of the quarter, down from £756m a year earlier.
Wetherspoons also highlighted that it has outperformed the NIQ RSM Hospitality Business Tracker for 49 consecutive months, with September like-for-like sales growth of 9.9% against an industry average of 2.7%.
The FTSE 250-listed firm opened six managed pubs during the period and expects to add a further five to 10 sites this financial year, while also forecasting 10 to 15 additional franchise openings. It currently operates 797 managed pubs and 25 franchised locations.
Separately, chairman Tim Martin renewed criticism of the hospitality sector's cost burden, arguing that rising labour costs and VAT disparities have widened the pricing gap between pubs and supermarkets and placed additional pressure on employment in the industry.
Looking ahead, Martin said: "The company has had a good start to the financial year. There are still three quarters to go and profit forecasts are very dependent on the level of sales growth. We are comfortable with current market expectations, once adjusted for the 53-week period."
As of 0855 GMT, Wetherspoons shares were 0.59% softer at 1,019p.
Reporting by Iain Gilbert at Sharecast.com
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