Marston's shares dropped as much as 16% today, despite the British pub operator reporting strong festive trading, as investors focused on flat like-for-like sales across the broader 17-week period and questioned whether the company can sustain momentum.
The owner of more than 1,300 pubs across Britain said like-for-like sales rose 4% over the festive period between December 21, 2025, and January 3, 2026, yet sales for the full 17 weeks to January 24 were in line with the prior year.
The muted performance beyond the Christmas season raises concerns about underlying consumer demand in Britain's hospitality sector, which is facing cost pressures and cautious spending as households navigate a stretched cost-of-living environment.
The subdued top-line momentum could weigh on the shares, JPMorgan analysts said in a note, adding that the flat sales lagged those of its closest rival, Mitchells & Butlers, which reported 4.5% like-for-like sales growth in the first quarter.
Shares in the company were heading for their biggest one-day percentage drop since February 2021.
JD Wetherspoon last week warned that fiscal 2026 profit could fall as it contends with mounting costs from energy bills, repairs, and property taxes.
Marston's has kept a tight control on costs and upgraded its sites to attract footfall and drive profitability.
It said it was confident in meeting full-year underlying pretax profit market expectations of £78.7m, as it banks on events including the 2026 FIFA World Cup to increase footfall.
Potential upside could also come from changes in business rates, analysts at Panmure Liberum said.
The British government yesterday announced a support package for pubs and live music venues in England, providing some relief from the property tax rises announced last year, which left the hospitality industry reeling.
