Marston’s says England World Cup matchdays delivered like-for-like sales growth of 22%, with sales up around 170% year-on-year across its sports-focused Grandstand pubs, as the tournament reinforced the group’s confidence in meeting full-year expectations.
The pub group’s new formats continue to impress more broadly, with the 36 Grandstand conversions completed to date generating year-to-date like-for-like growth of around 30%.
Clearly seeing legs in their strategy, Marston’s plans to substantially step up investment in FY2027, targeting around 100 conversions focused on the format.
But there is still some softness that kept shares in check on Tuesday. Across the wider estate of more than 1,300 pubs, year-to-date like-for-like sales are 1.6% lower than last year, with softer off-peak trading offsetting strong growth at peak occasions. Higher-value Order & Pay sales rose 45%, and guest reputation scores remain strong.
The group expects to hit the EBITDA margin expansion target set at its October 2024 Capital Markets Day this financial year. This will be significantly ahead of schedule and represents more than 200 basis points of margin gains over two years.
With pre-IFRS16 leverage expected to reach around 4x by the preliminary results, the board plans to commence a programme of shareholder returns alongside the accelerated formats rollout, most likely through share buybacks, subject to market conditions.
Marston shares rose 1% on the news on Tuesday.
Justin Platt, CEO of Marston’s PLC, said: “Our pubs have delivered a strong start to the summer, with an excellent World Cup once again underlining the enduring role of the community pub as the place the nation comes together to cheer the moments that matter. Our new Grandstand pubs have been leading the way and continue to perform ahead of expectations, while our accelerated investment programme is driving further trading momentum and enhancing guest experiences across our estate.
“Supported by a clear strategy, disciplined cost control and continued investment in our new formats, we are well positioned for the summer trading period ahead. Given this, as well as our progress on leverage reduction, the Group is well-placed to recommence shareholder returns in FY2027.”