Pub operator JD Wetherspoon's cheap and cheerful formula helped it shrug off the economic gloom to report like-for-like sales ahead by 1 per cent in the 11 weeks to 11 July. In fact, overall sales grew by 5.8 per cent over the same period, thanks to a net 39 new outlets opening in the financial year to date.
Operating margins were flat at 10 per cent, but the group has been successful in maintaining volume growth, mainly through new pub openings, which management says are performing well. What's more, the depressed state of the property market means that Wetherspoon will be able to pick up further sites at reasonable prices. Despite spending on new openings, strong free cash flow also means that debt remains manageable at just 2.8 times cash profits - low for a pub operator.
When: 11/03/10
Price: 513p
Performance to date: -18%
