Wetherspoons: Pub chain hails Guinness as key to rising sales

Pub giant JD Wetherspoon has hailed soaring demand for Guinness from younger punters and recovering ale sales as it reported growth over the past three months.

Wetherspoons, which runs 809 pubs across the UK, said like-for-like sales increased by 5.2% over the 13 weeks to April 28 compared with a year earlier, with total sales up 3.3%.

As a result, the company said it expects annual profits to be “towards the top of market expectations”.

Tim Martin, chairman of JD Wetherspoon, said: “Sales in the period continued the steady recovery from the pandemic. Traditional ales, which were very slow in the aftermath of the lockdowns, are increasing momentum, with Abbot Ale, Ruddles Bitter and Doom Bar showing good growth, as indeed are ales from the many small and micro brewers with which we trade.

“The gods of fashion have smiled upon Guinness, previously consumed by blokes my age, but now widely adopted by younger generations. The company expects profits in the current financial year to be towards the top of market expectations.”

Charlie Huggins, manager of the Quality Shares Portfolio at Wealth Club, said: “Wetherspoons seems to be moving in the right direction, following a difficult few years. Like-for-like sales are growing and profits are expected to come in towards the top end of expectations. Wetherspoons is being helped by moderating inflation combined with a proposition that is clearly resonating with the consumer.

“Despite higher interest rates, consumers are still spending. However, they are becoming increasingly discerning. Wetherspoon’s commitment to low prices and doing the basics well are helping to keep punters loyal. With many pub and restaurant companies struggling there is an opportunity for Wetherspoons to gain share in the current environment. With costs also coming down, it looks well set to continue its profit recovery."