Analyst Views: What do you make of JD Wetherspoon’s interim management statement?

 
Oliver Smith
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JAMES HOLLINS | INVESTEC
Wetherspoon has delivered strong like-for-like performance and increased its targeted estate expansion for 2014. Wetherspoon, despite a rise in our maintenance capex estimates to reflect a facilities upgrade programme, is forecast to drive a free cash flow yield of 8.7 per cent this year.

NICK BATRAM | PEEL HUNT
“Top-line growth was better than we expected, but the operating margin slightly lower. However, we have been here before, and if the broader economic recovery comes through then Wetherspoon should be a beneficiary. Raised guidance in terms of the estate expansion is positive.

DOUGLAS JACK NUMIS
“First quarter like-for-like sales rose 3.7 per cent, ahead of our 2.5 per cent full year forecast. Margins fell 30 basis points, in line with our forecast, but below flat previous guidance. We are holding current year forecasts and upgrading future year numbers to reflect a pick-up in its expansion rate.