The FTSE 250-listed pub operator J D Wetherspoon PLC (GB:JDW) returned to profit in the fiscal year 2023 as it continued its journey of sales recovery after the pandemic. The company announced its annual results for FY23 today with favorable numbers backed by resilient customer demand for its competitively priced beverages and food during the cost-of-living crisis.
The market responded unfavorably to the financial results, with the shares declining by over 3% today at the time of writing. Despite this recent dip, the stock has delivered a substantial return of 50% in 2023, driven by the revival of its operations and strong overall performance.
J D Wetherspoon owns a network of pubs and hotels across the UK and Ireland, offering a variety of alcoholic and non-alcoholic beverages and food options.
Annual Results FY23: Back in the Profit Zone
In the fiscal year 2023, the company posted an increase of 7.4% in its like-for-like sales as compared to FY19 levels. The sales have shown continuous improvement in the initial nine weeks for the fiscal year 2024 as well, registering a 17.3% increase over the corresponding nine-week period of FY19. The total sales for FY23 amounted to £1.925 billion, marking a 10.6% increase compared to the previous year. Among its segments, food sales increased by 16.7%, while bar sales reported a jump of 9% on a year-over-year basis.
The group reported a profit before tax of £42.6 million for the year, which marked a significant turnaround from the £30.4 million loss reported in the previous fiscal year. This also signifies the company’s return to profitability for the first time since the onset of the pandemic.
Is J D Wetherspoon a Good Stock to Buy?
Today, Jefferies analyst James Wheatcroft reiterated his Buy rating on the stock, predicting a growth rate of 35.5% in the share price. Moreover, analyst Mark Irvine from Stifel Nicolaus confirmed his Hold rating on the stock.
According to TipRanks’ analyst consensus, JDW stock has a Moderate Buy rating based on one Buy and one Hold recommendation. The JD Wetherspoon share price forecast is 837.5p, which is 25.5% higher than the current trading levels.
