J D Wetherspoon: Don't Expect Fizzy Returns Any Time Soon

2025-04-03 09:00:00 ET

Summary

• J D Wetherspoon's share price has plummeted from its 2021 peak, with a P/E ratio of 10.5 suggesting a buying opportunity, but we remain cautious of a potential value trap.
• Despite a 3.9% rise in revenue and 4.8% LFL sales growth in H1, Spoons's core segments like food and drinks saw modest gains, while EBIT margins fell 115bps.
• Higher costs and taxes with volatile commodity prices will continue to squeeze margins, with EBIT margins not expected to recover to pre-pandemic levels until FY29.

Read the full article on Seeking Alpha

For further details see: