JD Wetherspoon hopes to soon open its 1,000th pub in the UK after reporting another rise in profits.
The chain currently has more than 800 branches, but “best estimates” say it has the potential to add around 200 more in the coming years.
The ruling came after the pub giant revealed that its pre-tax profits rose to £36 million in the six months to the end of January, an eight-fold increase from the £4.6 million it made in the same period a year earlier.
Bar sales increased by 11.6% and food sales by 7.6%.
Total number Wetherspoon pubs it peaked at 955 in December 2015, but has since sold dozens of locations.
Founder and president Sir Tim Martin he admitted that the company had been “flushed” with its previous expansion, but said it was now acting more strategically as it continues to expand its UK property.
He told Sky News Ian King's Live Business: “I think what we have found is that in many cities we have put two pubs where we should have had one. So we usually went back to one and enlarged the one that remained.
“So I think we just got a shot of blood in the head.”
Asked when Wetherspoon will open its 1,000th branch, Sir Tim said: “I think it will take us quite quickly to go from 500 to 800.” [pubs]but filling the final gaps is slower.
“So I don't want to impose too much of a schedule, but probably no more than a dozen a year.”
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In the six months to the end of January, Wetherspoon said it had sold five pubs, terminated the leases of a further five and sublet a further three premises.
A report on its interim results for the period, published on Friday, said: 'Despite a reduction in the overall number of pubs, sales continue to grow – total sales are now around a third higher than in 2015.'
Despite positive earnings data, Wetherspoon shares fell on Friday morning and were down more than 7% in the afternoon.
This came after interim results showed that sales growth compared to the same period in February and March had so far slowed to 5.8%, down from 9.9% in the six months to the end of January.
Sir Tim told Sky News he was surprised by the market reaction, describing Friday's figures as “the best performance we have had in years”.
In his interim results report, Sir Tim said sales were continuing to grow.
He added: “The company currently anticipates reasonable results for the fiscal year, contingent upon our future sales performance.”
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Derren Nathan, head of equity research at Hargreaves Lansdown, said: “There are a lot of vacancies on the market and the suggestion that there may be potential for around 1,000 pubs, up from the current figure of 814, could mean the estate is starting to expand.” . grow again.
“This could mean a further further recovery in dividend returns.
“Location is key, with recent openings including Stargazer in the old Millennium Dome in Greenwich and Star Light at Heathrow Airport. Overall, restoring development to the estate could be a welcome development.”
