JD Wetherspoon has warned today that its fiscal 2026 profit could fall as the British pub chain grapples with mounting costs from energy bills, repairs and property taxes, sending shares 8% lower in early trading.
Like-for-like sales rose 4.7% in the 25 weeks to January 18, on strong bar sales during the second quarter and the Christmas period, but revenue growth has been offset by rising expenses.
The pub group said profits in the first half ending January 25 are likely to be lower as costs jumped by £45m in the first 25 weeks.
Shares fell more than 8% in early trade, putting the stock on track for its worst day since March last year.
"If the current sales momentum continues, the company currently anticipates a full year trading outcome slightly below that achieved in FY25," Chair Tim Martin said in a statement.
Changes to business rates introduced in November - a property tax on commercial premises - have raised concerns about possible pub closures and job losses across the pub industry.
The British Beer and Pub Association has warned that up to 15,000 jobs could be at risk and about 5,000 smaller pubs facing a business-rates bill for the first time.
Earlier in January, the UK government said it was considering measures to ease business‑rates pressures on pubs and would explore licensing and deregulation steps to support the hospitality sector.
After a year marked by higher wages and national insurance costs, the latest increases in energy bills and taxes are adding pressure to Wetherspoon's low‑cost model, which analysts say could limit its ability to raise prices.
