Young’s: Pub chain in ‘great shape’ after Christmas despite Budget burden
Young & Co have reported an excellent Christmas trading period, with optimism abound despite a higher cost burden for the hospitality sector this year.
The pubs-and-rooms operator, which has around 228 pubs and 5,600 employees, said that revenue in the five weeks to January 13 rose 30.4 per cent, with like-for-like sales up 11.6 per cent.
Its share price rose more than four per cent in early trades, although it has fallen just over 13 per cent in the last six months.
Trading on key festive days was similarly strong, with combined like-for-like sales covering Christmas Eve, Christmas Day and Boxing Day up 10.5 per cent.
Chief executive Simon Dodd said the festive period had delivered “some of the highest daily sales in Young’s history”.
“Looking ahead, whilst we remain mindful of the headwinds facing consumers and the wider issues that our industry will encounter from the increase in both National Insurance contributions and National Living Wage, our business is in great shape, and we continue to be optimistic about the year ahead,” Dodd said.
The company faces a cost hike of £11m due to higher national insurance contributions and a higher living wage, but has previously said it has no plans to raise prices in response.
Dodd’s comments this morning chime in with pub giants Mitchells & Butlers and Fuller, Smith & Turner, both of which have reported confidence and optimism despite the challenges facing hospitality.
Mitchells, the owner of Harvester, Toby Carvery and All Bar One, reported like-for-like growth of 10.4 per cent over the core festive three-week period, while Fullers said that like-for-like sales grew of 10.2 per cent over the five-week Christmas and New Year period.
Panmure Liberum analysts rated Young’s a ‘Buy’, explaining that “momentum has accelerated”, with “exceptionally strong trading” ahead of the wider market.