J D Wetherspoon preliminary FY26 adjusted pretax profit misses estimates on higher costs
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: ID:nRSB3165Xa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
FY Sales | Slight Beat* | GBP 2.24 bln | GBP 2.22 bln (9 Analysts) |
FY Adjusted Pretax Profit | Miss | GBP 58.60 mln | GBP 63.54 mln (8 Analysts) |
FY Dividend |
| GBP 0.008 |
|
FY LFL Growth |
| 4.20% |
|
*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
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Sept 29 - Irn-Bru maker AG Barr sees stronger second half as supply woes ease
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(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.)