The riotous post-referendum surge in the shares of discount pub chain JD Wetherspoon (JDW) came to a sobering end this week a the stock fell roughly 7 per cent on a middling trading update.
IC TIP:
Sell
at
830p
Shares in the pub group had risen a fifth since the vote result on 24 June, but warnings that like-for-like sales had dropped 2.3 per cent in the final weeks of the three-month period under review looked to have rattled investors. Margins are guided at 7 per cent for the full year, but ramped-up estate improvement costs (£60m this year compared with £34m last year) and changes to wages and business rates could have an impact even before trading performance is considered.
