J D Wetherspoon preliminary FY26 adjusted pretax profit  misses estimates on higher costs

Overview

• UK pub operator's preliminary FY26 sales rose 5.2%, slightly beating analyst expectations

• Adjusted pretax profit for FY26 fell 28% and missed analyst expectations

• Like-for-like sales for the year grew 4.2%

Outlook

• Company expects FY27 profit before tax and separately disclosed items in line with consensus of £74 mln

• Company says strong recent sales growth partly driven by exceptional weather, which may not continue

• Company plans to open about 15 managed pubs and 15-20 franchises in current financial year

Result Drivers

• RISING COSTS - Co said higher wages, repairs and business rates weighed on profits

• BAR SALES - Co said bar sales rose 6.1%, contributing to overall like-for-like sales growth

• OUTDOOR SEATING - Co said expansion of beer gardens and outside seating areas helped boost sales during hot weather

Company press release:

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 4 "hold" and 4 "sell" or "strong sell"

• The average consensus recommendation for the restaurants & bars peer group is "buy."

• Wall Street's median 12-month price target for J D Wetherspoon PLC is GBp715.00, about 12.1% below its October 1 closing price of GBp813.00

• The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 13 three months ago

Reuters Recommended Reads

• Sept 30 - UK's Shepherd Neame FY revenue slips, partly on fall in beer volumes

• Sept 30 - UK's Greggs raises profit outlook but plans factory closures

• Sept 29 - Irn-Bru maker AG Barr sees stronger second half as supply woes ease

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)