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Highlights

  • JD Wetherspoon reported a 5.7% YoY revenue increase in FY24, driven by higher weekly sales per pub
  • In FY24, JDW’s operating profit grew by 30.3%, mainly due to reduced concession rental payments
  • Diluted EPS rose by 77.3%, from 26.4 pence in FY23 to 46.8 pence in FY24

JD Wetherspoon PLC (LSE:JDW) operates a chain of pubs across the United Kingdom and Ireland. Its Wetherspoon app lets customers order food and drinks directly to their table using their phones.

FY24 Performance

In the financial year 2024 (FY24), JD Wetherspoon reported a 5.7% YoY increase in revenue, rising by GBP 110.5 million to GBP 2,035.5 million, driven by a rise in average weekly sales per pub to GBP 58,100, up from GBP 53,000 in FY23.

In FY24, operating profit increased by 30.3% YoY and reached GBP 139.5 million, primarily due to lower variable concession rental payments. Diluted EPS also rose by 77.3% YoY, from 26.4 pence in FY23 to 46.8 pence in FY24.

Additionally, JDW paid a final dividend of 12.0 pence per share on 28 November 2024, following an ex-dividend date of 24 October 2024, marking a 100% increase in total dividends for the year.

Recent Business Update

In the trading update for the 14 weeks to 3 November 2024, Wetherspoon reported a 5.9% increase in like-for-like (LFL) sales. Both bar and food sales saw a rise of 5.7%, while slot machine sales grew by 13.5%. However, hotel room sales declined by 2.0%, and overall total sales increased by 4.6%, slightly below the LFL growth due to pub disposals.

The company has continued to outperform the industry for 25 consecutive months, with notable LFL sales growth of over 4.1% in August and more than 5.7% in September, compared to the industry’s respective growth of +1.3% and +1.7%.

Top 10 Shareholders

The top 10 shareholders of JDW collectively hold approximately 68.93% of the company’s total shares. The largest shareholder is Martin (Timothy Randall), who owns around 24.86% of the shares, followed by Fidelity Management & Research Company LLC with an 8.07% stake.

Company Outlook

Wetherspoon's like-for-like sales increased by 4.9% in the nine weeks to 29 September 2024. Despite concerns over potential lockdowns and a government inquiry, the company is confident in overcoming these challenges. Supported by sustained sales growth, Wetherspoon remains optimistic about achieving a positive financial outcome.

Stock Information

Over the past three months, the stock has dropped by approximately 13.77%, and it has declined by around 17.66% over the last six months. The 52-week range for the stock is GBX 572.50 (low) to GBX 864.50 (high). As of 20 January 2025, the stock closed at GBX 610.50 which is lower than the average of its 52-week high and low.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is 20 January 2025. The reference data in this report has been partly sourced from EODHD/Others.