The boss of pub giant JD Wetherspoon has warned that the company could miss profit guidance after a jump in costs. Chairman and founder Tim Martin said the group is among hospitality operators to have seen “substantial increases in costs” recently, adding that this could result in “profits slightly below market expectations”.
Cost pressures mount
Wetherspoons previously stated that increases in National Insurance contributions and wages would cost the business around £60 million per year. It is also facing an extra £1.6 million in tax this year through the Extended Producer Responsibility packaging levy. These rising expenses have prompted the profit warning.
Sales growth slows
The warning came as the firm, which operates 794 managed pubs and 21 franchise sites, revealed slower sales growth over the latest quarter. Like-for-like sales grew by 3.4% in the 13 weeks to April 2026, compared with a year earlier, down from 4.8% growth in the six months to the end of January. Over the financial year-to-date, like-for-like sales have risen by 4.3%, with total sales up 4.9%.
Pub estate stable
Wetherspoons opened eight new pubs over the latest quarter but closed eight others, leaving its total pub estate stable. Mr Martin highlighted a strong pipeline of new openings, including at Manchester Airport, Heathrow Airport, Paddington station, Charing Cross station, and Shaftesbury Avenue in central London.
Analyst reaction
Robinhood UK lead analyst Dan Lane commented: “Wetherspoon pubs are pulling their weight but it’s becoming a familiar story of costs (labour and taxes in particular) absorbing that growth. Sales are holding up, with the company’s value proposition still bringing in customers in a stretched consumer environment. But, with cheap pints getting people through the doors, management is clearly reluctant to push pricing meaningfully, which means there’s little sign of margin relief ahead.”
