Pub giant JD Wetherspoon has cautioned that its profits are likely to fall short of market expectations, attributing the potential shortfall to a significant surge in operating costs.
Chairman and founder Tim Martin stated that the group has experienced "substantial increases in costs", which he anticipates will result in "profits slightly below market expectations".
The warning comes as the company also revealed slower sales growth.
Wetherspoon previously highlighted that rising National Insurance contributions and wages are projected to cost the business around £60 million annually, alongside an additional £1.6 million in tax this year from the Extended Producer Responsibility packaging levy.
Despite these financial pressures, the pub chain reported a 3.4 per cent rise in like-for-like sales for the 13 weeks ending April 2026, compared to the previous year.
Like-for-like sales had risen by 4.8 per cent over the six months to the end of January.
It means like-for-like sales have risen by 4.3 per cent over the financial year-to-date, with total sales up 4.9 per cent for the period.
Wetherspoons said it also opened eight more pubs over the latest quarter but saw its total pub estate remain stable after also shutting eight sites.
Mr Martin said: “The company has a strong pipeline of new pubs and planned openings include Manchester Airport, Heathrow Airport, Paddington station, Charing Cross station and Shaftesbury Ave in central London.”
Robinhood UK lead analyst Dan Lane said: “Wetherspoon pubs are pulling their weight but it’s becoming a familiar story of costs (labour and taxes in particular) absorbing that growth.
“Sales are holding up, with the company’s value proposition still bringing in customers in a stretched consumer environment.
“But, with cheap pints getting people through the doors, management is clearly reluctant to push pricing meaningfully, which means there’s little sign of margin relief ahead.”
The latest trading performance comes as the British pub chain launched its inaugural mainland European establishment at Alicante airport in Spain.
The Castell de Santa Barbera is situated in the departures area and aims to offer UK holidaymakers a taste of Britain before their journey home.
Trading seven days a week from 6am to 9pm, the venue offers traditional pub food, including English fry-ups and burgers, alongside popular local dishes such as garlic prawns and Spanish omelette.
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