J D Wetherspoon plc (LON: JDW) have seen their shares spike following a positive quarterly update, coming at a time where competitors have seen slumps across the market.
Shares of Wetherspoon spiked 1.85% on Wednesday to 1,553p. 13/11/19 12:57BST.
The British pub chain boasted strong sales figures, which increased across the quarter as customers spent more its nearly 900 pubs across Britain and Ireland.
The company reported higher demand for coffee, pink gin, real ale and breakfast. Additionally beer sales rose significantly as British consumer trends changed by the quarter.
Wetherspoons reiterated their full year performance to be kept in line with annual expectations after a strong financial 2019, with increasing sales and continued political activism headlines from Chairman Tim Martin.
In a market where competitors such as Greene King (LON: GNK) and Whitbread (LON: WTB) have been hit headlines of slowing business and takeover bids, Wetherspoons seem to be performing well.
Additionally, while Slug and Lettuce owner Stonegate agreed to buy Ei Group (LON: EIG) for £1.27 billion, which may stiffen competition to the Wetherspoon
The FTSE250 (INDEXFTSE: MCX) listed firm have been battling increased costs due to a mandatory minimum wage hike, higher property prices and power bills, however these rises were not to affect performance.
J D wetherspoon’s like-for-like sales rose 5.3%, which exceeded both market and analyst expectations.
“This is a strong start to the year in our view, ahead of our forecast revenue growth of 4.0% for the full year, but we are mindful of the early stage of the year, challenging market backdrop…and potential changes to national living wage,” Investec (LON: INVP) said in a note.
Additionally, Chairman Tim Martin gave his opinions on Britains stance with the EU saying, “I strongly believe that the UK economy will be better off on the basis of ‘no-deal’ rather than the deal proposed by the government,”
“The trenchant debate surrounding Brexit, thanks to our democratic freedom, has, in my view, exploded myths and increased knowledge on key subjects like trade, tariffs, government and Europe – on a vast scale,” Tim Martin continued.
“For example, the pugnacious Jean-Marc Puissesseau, head of Calais ports, has completely undermined the false presumption that the channel ports will seize up post Brexit, without a ‘deal’.”