British pub chain JD Wetherspoon has today reported a slower start to its new financial year and highlighted sustained cost pressures in a difficult consumer climate, sending the pub group's shares down nearly 5%.
The company reported like-for-like sales growth of 3.2% in the nine weeks to September 28 of fiscal 2026, compared with growth of 4.9% in the same period last year.
For fiscal 2025 that ended on July 27, life-for-like sales growth was at 5.1%, helping Wetherspoon report higher profit despite a subdued consumer market, which could come under more pressure from the upcoming budget.
Market research company GfK said consumer confidence has been dented by the prospect of tax increases in Finance Minister Rachel Reeves' November budget, with further weakening expected.
Rival pub operator Mitchells & Butlers in late September also reported slower sequential growth in quarterly like-for-like sales, as households tightened budgets and increased savings.
Britain's hospitality sector faces mounting cost pressures from higher wages and national insurance, which analysts say could reverse post-pandemic recovery trends.
JD Wetherspoon also flagged rising energy costs.
"Cost increases such as these will undoubtedly add to underlying inflation in the UK economy, although Wetherspoon, as always, will endeavour to keep price increases to a minimum," Chairman Tim Martin said in a statement.
He said Wetherspoon, which is known for its low-cost model, expects a "reasonable outcome" for its current financial year, though rising government-imposed costs, including energy expenses, could weigh on performance.
"We retain our concerns over long-term margin recovery potential which will slow in the face of rising labour costs as the scope for price rises and disposals diminishes," Panmure Liberum analysts said, referring to sales of pubs.
Wetherspoon reported adjusted pre-tax profit of £81.4m for fiscal 2025, compared with £73.9m the previous year.
