Wetherspoon ( J.d.) Share Discussion Threads

[eldermon] 26/8/2015 11:34

Good to see a 50k trade this morning although a more positive move in the share price would be better.

[racg] 21/7/2015 21:31

Yes margins are a problem. I prefer buy backs since Osborne the terror attacked dividends. I like Tim. He is not the usual city grandee. He still owns A quarter of the company.

Will they be able to lift margins a little as minimum wage increases? Hope so. I like the buying of freeholds. I m not sure whether to double up here. Is jdw the best in the boring pub chain sector?

[glenowen] 17/7/2015 22:11

Essential Investor - I think that the very generous wages and bonuses must have something to do with the margin deterioration. While I am all in favour of paying the staff reasonably well and incentivising them, an 8% increase looks way over the top. Time for the company to pay more attention to shareholder returns, which have not been that good in the recent past.

Like yourself, I bought into JDW at flotation and have been very happy with the way Tim Martin has run the company over the past 20 years or so. One thing that he has never done - highly unusual for a top executive of a large quoted company - is to feather his own nest, via share options, management incentive plans and that sort of thing. That says to me that he is driven by the desire to continue making the a success of the business rather than line his own pockets, like so many directors of other companies do.

But I do wish he would increase the dividend! Historically, this has been parsimonious and even after the recent share price decline, JDW still yield well under 2%. The share buy-backs continue apace, but I would far rather have an increase in the dividend. In 2000, the issued share capital was over 210m and now it's down to just north of 120m. That large reduction has undoubtedly underpinned the share price for many years, but the continuing decline in margins - with no sign of that situation being turned around - is a major concern.

[hotfinance14] 17/7/2015 17:15

This share has been truly battered this week.

[essentialinvestor] 15/7/2015 15:18

Just for some context Tim's longer term record is beyond exceptional,
I had some at flotation and wish I had held and forgot about.

What I do not fully understand is why at this point JDW appears to be hit hard
on margins when some of the other quoted operators are producing very strong returns?.

[gbb483] 15/7/2015 12:15

It doesn't need a share buyback, it needs Tim Martin to stop whining and do something positive.

[my retirement fund] 15/7/2015 09:42

It almost reads as a profit warning doesn't it. One things for sure they will be hit harder than supermarkets. The market does not like it. Unless the embark on an agressive share buyback forward policy, the shareprice looks set to fall below its 12 month low.

[essentialinvestor] 15/7/2015 08:45

An 8% wage increase for this year folks, would be surprised if that was
factored in to 2016 analysts estimates.

[gbb483] 15/7/2015 08:41

Yep, spot on.

[gbb483] 13/7/2015 17:09

Q4 statement on Wednesday - I wonder what Tim will be bleating about this time, 10 to 1 it's based on how unfair everyone is to him.

[gbb483] 10/7/2015 17:15

Everything is up - but not JDW. Given what a wimp of a manager they've got, it's hardly surprising.

[my retirement fund] 09/7/2015 12:20

Companies in effect pay. Some companies will be fine. Others will struggle as their customers will not consume or use the services to the extent than when they were on offer cheaper.There will be no extra money in customers pockets.

[standish11] 09/7/2015 11:34

As Wetherspoons staff had a pay rise of 5% last year maybe the bridging of the gap to comply with the minimum wage criteria may not have the impact that some of their competitors will experience. I am sure that Tim Martin will whinge again about margin pressure however and understandably so.

[optomistic] 09/7/2015 10:53

Share price fall will likely be attributed to the announcement that they are to sell 19/20 pubs.
Re the minimum wage, that will be the same throughout the entire country workforce not just to Wetherspoons and the £9 rate is to be phased in up to 2020.
Cost of products and services will increase, so will inflation (which is what the govnt want)and all things will be back to where they were before except the money that we have in our pockets and banks will be worth less!

[my retirement fund] 09/7/2015 10:30

Standish apologies for my language. That said this is supposed to be a web site for over 18s in general!

[my retirement fund] 09/7/2015 10:29

Optomistic I guess you never listend to the budget. Massive hike in the minimum wage to £9 per hour plus for over 25s.This is going to mean spoons will have to hike food and beverage prices and in some cases dare I say, close any spots which already find business hard.EI essentially there does not seem anyreason to hold. That said its worth keeping an eye on how the hotel element is performing. If they were onto something there and ramped up that sector who knows.That said Hotels rely on minimum wage as well so again its a sector that will be hit hard.

[essentialinvestor] 09/7/2015 09:53

Is there a compelling reason to hold this short term?, when was the last
dividend increase.

[optomistic] 09/7/2015 09:29

I'm curious as to this mornings drop, can't find any negative news anywhere.
Has anyone any info that can help out?

edit..Standish I support you entirely there!

[standish11] 07/7/2015 10:45

My Retirement Fund
A very good post until you spoiled it by your disgusting language in the final paragraph.

[mikeh30] 06/5/2015 08:31

GBBhttp://mobile.morningadvertiser.co.uk/Legal/Licensing-law/JD-Wetherspoon-to-vary-pub-licences-in-late-night-levy-protest

[gbb483] 06/5/2015 08:28

Interim statement today :

The Late Night Levy, combined with higher business rates per pint and a huge VAT disparity, mean that pubs continue to trade at a great disadvantage to supermarkets.

It's about time Tim stopped bleating about this and started working with it. It isn't going to go away, and by putting this in every report he just shows how little he's trying to counter it.

[19bells] 05/2/2015 08:20

Tumbling oil prices means folk spend less money per week at the petrol pump and more down at the pub. 2015 should be a good year for jdw

[essentialinvestor] 03/2/2015 11:40

Surprised JDW held up so well following that IMS, just IMV only.