JD Wetherspoon issues 3rd profit warning with profits expected £73m
Business
JD Wetherspoon, the well-known UK pub chain, just issued its third profit warning this year.
Rising prices for energy, food, wages, and taxes are squeezing about 800 pubs across the UK and Ireland.
Profits are now expected to drop to £73 million, down from £81 million last year, even though sales at established pubs actually went up by 3.4% over the last quarter.
Net debt could reach £760m
New business rates and a higher minimum wage kicked in this April. Extra taxes on packaging and pricier energy (partly due to global conflicts) aren't helping either.
The company says its net debt could hit as much as £760 million by the end of its financial year—a sign of how tough things have gotten for hospitality right now.