J D Wetherspoon (JDW) AI Stock Analysis

• Market Cap: £693.95M
• Dividend Yield: 2.02%
• Average Volume (3M): 296.35K
• Price to Earnings (P/E): 14.7
• Beta (1Y): 0.98
• Revenue Growth: 5.74%
• EPS Growth: -16.78%
• Country: UK
• Employees: 24,397
• Sector: Consumer Cyclical
• Sector Strength: 53
• Industry: Restaurants & Bars
• EPS (TTM): 0.40
• Shares Outstanding: 121,782,196
• 10 Day Avg. Volume: 282,103
• 30 Day Avg. Volume: 296,354
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.36
• Price to Cash Flow (P/CF): 3.10
• P/FCF Ratio: 2.50
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: 825.00p
• Price Target Upside: 42.24% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

J D Wetherspoon is on a recovery path with improved financial performance and fair valuation, but high leverage and bearish technical indicators temper the outlook. Despite the challenges, strategic share repurchases and management share acquisitions highlight confidence in the company’s future.

Positive Factors

Financial Strength

A restored dividend highlights the return to financial strength.

Market Share

Wetherspoon's low-price consumer proposition should benefit in the event of trading down, with market share gains as smaller scale operators struggle to absorb wage increases.

Negative Factors

Employment Costs

JD Wetherspoon re-flags the £60m hit from increased employment costs.

J D Wetherspoon Business Overview & Revenue Model

Company Description

J D Wetherspoon (JDW) is a prominent British pub chain, founded in 1979, that operates a large network of pubs and bars across the United Kingdom and Ireland. The company is known for offering a wide range of food and drink options, including real ales, craft beers, wines, and spirits, alongside traditional pub fare. JDW has built a reputation for its affordable prices, extensive selection, and unique pub environments, often located in repurposed historic buildings.

How the Company Makes Money

JD Wetherspoon generates revenue primarily through the sale of food and beverages in its pubs. The company capitalizes on its high-volume, low-margin business model, offering competitively priced menu items that attract a broad customer base. Key revenue streams include alcoholic beverages, which typically account for a significant portion of sales, and food services, which complement drink offerings. JDW also focuses on cost efficiency through centralized purchasing and economies of scale, allowing it to maintain low prices while ensuring profitability. Additionally, the company benefits from strategic site selections and renovations of existing properties to enhance customer experiences and maximize foot traffic. While JDW does not heavily rely on external partnerships, its relationships with suppliers and its ability to negotiate favorable terms are crucial components of its operational success.

J D Wetherspoon Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

Breakdown
Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
2.04B	1.93B	1.74B	772.55M	1.26B
	Gross Profit
238.10M	159.07M	100.28M	-72.02M	44.53M
	EBIT
142.59M	106.29M	50.63M	-312.11M	-127.78M
	EBITDA
230.22M	266.26M	192.65M	-24.71M	71.11M
	Net Income Common Stockholders
48.78M	59.59M	19.27M	-177.01M	-97.56M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
57.23M	87.17M	40.35M	45.41M	174.45M
	Total Assets
1.90B	1.99B	2.09B	2.01B	2.27B
	Total Debt
1.14B	1.18B	1.41B	1.41B	1.56B
	Net Debt
1.08B	1.09B	1.37B	1.37B	1.39B
	Total Liabilities
1.50B	1.59B	1.76B	1.73B	1.95B
	Stockholders Equity
401.63M	399.46M	321.88M	277.98M	317.25M
Cash Flow		Free Cash Flow
62.30M	315.45M	73.46M	-57.61M	-27.54M
	Operating Cash Flow
172.56M	362.41M	119.35M	-35.30M	16.76M
	Investing Cash Flow
-98.64M	-67.17M	-112.20M	-57.73M	-188.36M
	Financing Cash Flow
-103.86M	-248.41M	-12.21M	-36.02M	303.10M

J D Wetherspoon Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 580.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:JDW, the sentiment is Negative. The current price of 580 is below the 20-day moving average (MA) of 599.70, below the 50-day MA of 602.90, and below the 200-day MA of 674.82, indicating a bearish trend. The MACD of -4.69 indicates Positive momentum. The RSI at 38.05 is Neutral, neither overbought nor oversold. The STOCH value of 32.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:JDW.

J D Wetherspoon Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MARS	70 Outperform	£267.35M	―	-2.83%	―	3.02%	29.25%
MAB	68 Neutral	£1.30B	8.78	5.81%	―	4.27%	―
JDW	64 Neutral	£693.95M	14.65	12.15%	2.02%	5.74%	-16.78%
YNGN	61 Neutral	£455.15M	27.33	1.44%	3.81%	16.73%	-55.22%
Sector *	60 Neutral	$13.01B	10.45	0.79%	3.53%	1.60%	-22.47%
WINE	56 Neutral	£47.21M	―	-27.15%	―	-15.67%	45.17%

J D Wetherspoon Corporate Events

J D Wetherspoon Directors Acquire Shares Under Partnership Plan

J D Wetherspoon plc has announced a transaction involving the purchase of ordinary shares by directors and persons discharging managerial responsibilities as part of the company’s partnership shares plan. This move, executed by Global Shares Trustees (UK) Limited, allows employees to acquire shares through salary deductions, potentially aligning their interests with those of shareholders and enhancing stakeholder engagement.

J D Wetherspoon Updates on Major Shareholder Position

J D Wetherspoon PLC has made a voluntary disclosure regarding a change in the chain of corporations controlled by FMR LLC, a significant shareholder. As of February 12, 2025, FMR LLC holds 6.3025% of the voting rights in J D Wetherspoon, a decrease from a previous position of 7.98%. This update may influence the company’s shareholder dynamics and could have implications for its governance.

Wetherspoon Updates Share Capital and Voting Rights

J D Wetherspoon has announced an update regarding its share capital and voting rights, with the total issued share capital now comprising 121,782,196 ordinary shares. This announcement is crucial for shareholders as it provides the denominator for calculating their interests under the Financial Conduct Authority’s Disclosure and Transparency Rules, impacting their reporting obligations.

J D Wetherspoon Updates Share Capital and Voting Rights

J D Wetherspoon plc has announced a change in its share capital following the cancellation of 425,000 ordinary shares. As of January 29, 2025, the company’s issued share capital consists of 121,782,196 ordinary shares, each with voting rights. This update affects how shareholders calculate their interests under the Financial Conduct Authority’s rules, potentially impacting their disclosure obligations.

J D Wetherspoon PLC Announces Share Repurchase and Cancellation

J D Wetherspoon PLC announced the repurchase of 275,000 of its ordinary shares at a weighted average price of 614.1391 pence per share through Investec Bank plc, with plans to cancel these shares. This move likely reflects the company’s strategic effort to manage its share capital and potentially enhance shareholder value by reducing the number of shares outstanding.

Wetherspoon Reports Sales Growth Amid Rising Costs and Unfair Taxation

J D Wetherspoon’s latest trading update reveals a 5.1% increase in like-for-like sales for the 25 weeks ending January 19, 2025, compared to the previous year, with notable gains in bar, food, and slot machine sales, although hotel room sales declined. Despite these positive sales figures, the company faces challenges with rising labor costs due to government-mandated wage increases, which disproportionately affect pubs compared to supermarkets. Wetherspoon’s chairman, Tim Martin, criticizes the VAT disparity between pubs and supermarkets, arguing it leads to unfair competition and a decline in pub beer volumes.

J D Wetherspoon Announces Director Share Purchases Under Partnership Plan

J D Wetherspoon has announced that its directors and persons with managerial responsibility have acquired ordinary shares in the company as part of its partnership shares plan. This transaction, conducted at a price of 612.02 pence per share, reflects the company’s commitment to aligning stakeholders’ interests through employee share ownership, potentially impacting management motivation and shareholder value.

J D Wetherspoon Announces Change in Voting Rights Structure

J D Wetherspoon PLC has announced a change in its voting rights structure due to an acquisition or disposal by Ninety One UK Ltd, which increased its voting rights in the company to 5.2799%. This adjustment reflects a strategic shift that may impact the company’s governance and stakeholder dynamics.

J D Wetherspoon Directors Acquire Shares Under Partnership Plan

J D Wetherspoon plc announced that Global Shares Trustees (UK) Limited acquired shares on behalf of several directors and persons discharging managerial responsibilities under the company’s partnership shares plan. This transaction, conducted as part of a regular monthly notification under the Market Abuse Regulation, reflects the ongoing participation of company leadership in share ownership, potentially aligning their interests more closely with those of shareholders.