Russ Mould, investment director at AJ Bell, said: “Wetherspoons is often compared to a cockroach – not as an insult but instead as a testament to its status as a survivor in what remains a beleaguered hospitality sector.
“The business continues to outperform many peers, and its value credentials should be prized by customers whose own budgets are squeezed.
“However, to keep prices low, Wetherspoons operates with skinny margins.
“It is heavily exposed to increasing costs and specifically the energy price shock created by the war in the Middle East.
“The market seems relieved this only means profit might fall slightly short of expectations and sales growth suggests demand is holding up well for now.
“A legacy of the pandemic is the heavy load of borrowings the company is carrying.
“While interest costs are expected to remain broadly unchanged year-on-year as debt ticks up, if interest rates move higher that could create another headwind for the business.”
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