Home Business News Wetherspoons urged to raise prices for profit growth

Wetherspoons urged to raise prices for profit growth

by LLB Reporter
8th May 19 11:44 am

Wetherspoons the pub chain has been urged to raise prices by the City, as their strong sales performance continues to be offset by higher costs.

Like-for-like sales for the UK’s pub chain rose by 7.6% in the 13 weeks to 28 April whilst comparable sales growth was 6.8% for the year to date.

City analysts voiced their fears growth in not translated into higher profits, on Wednesday share’s fell by more than 4% in early morning trading.

Profit before tax is broadly flat at just over £100m compared to £107.2m in 2018.

Peel Hunt analysts said their confidence in Wetherspoons full year outcome is “declining, from already low levels” over cost pressure and low pricing on the pub chains margins.

Peel Hun and Liberum brokers are urging the company to increase pricing to drive forward higher profitability.

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