Susannah Streeter, chief investment strategist at Wealth Club, said: “There will be worries that cheap pints might be the latest casualty of higher costs facing pubs, given JD Wetherspoon’s latest update.
“It demonstrates the extent to which the sector is grappling with mounting financial pressures despite steady demand.
“Although the bar is still busy, with Wetherspoon’s value offering continuing to pull in punters, margins risk being diluted as the rising cost burden froths up.
“Management has warned that profits could come in slightly below expectations, suggesting higher wage bills, energy prices and input costs are starting to eat into takings.
“The danger is that something has to give, and the worry will be that low pricing which is a cornerstone of Wetherspoon’s appeal may come under pressure.
“While the World Cup and extended opening hours may provide a short-term boost to sales, they’re unlikely to fully offset the squeeze, leaving the group with the increasingly tricky balance of keeping prices low while protecting profitability.”
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