Wetherspoons has seen its share price drop by over 11% after it stated that consumer finance pressures may impact its profit expectations in the current financial year.

The pub chain recorded a 4.8% increase in like-for-like sales in the 26 weeks to 25 January compared to the 2025 financial year, while its revenue increased by 5.7%.

In comparison to the same period last year, bar sales jumped by 7%, food sales increased by 1.3%, and slot/fruit machine sales rose by 8.9%.

However, in this period, its profit before tax dropped by 31.9% to £22.4m, while its operating profit fell by 18.4% to £52.9m.

Wetherspoons said this reduction was due to higher costs, including wages, which increased by £28m, repairs by £10m and business rates by £9m.

Chairman at Wetherspoons, Tim Martin, said: "As previously indicated, increases in national insurance and labour rates will result in cost increases of approximately £60m per annum, and non-commodity energy costs will add £7m.

"The 'extended producer responsibility' tax, a levy on packaging will cost £2.4m in the current year, an increase of £1.6m. These cost increases will undoubtedly add to underlying inflation in the UK economy, although Wetherspoons, as always, will endeavour to keep price increases to a minimum.

"There is clearly considerable pressure on consumer finances, combined with higher taxes, wages and energy costs for the hospitality industry. This may result in profits that are slightly below current market expectations. The forecast for year-end net debt remains unchanged."

Investment director at AJ Bell, Russ Mould, described cost inflation as "kryptonite" for Wetherspoons as it offers cheap food, booze and coffee across multiple outlets.

He concluded: "Wetherspoons hedges energy costs, which provides some insulation from the current price volatility in oil and gas, but it is unlikely to be entirely spared from the knock-on effects on suppliers and on consumer confidence.

"The management team are in a tricky spot – increase prices by too much and they undermine their value credentials and potentially alienate a portion of their customer base. They may take the view that absorbing some pain in the short term is a price worth paying to protect the brand.

"An outlook which is effectively a mild profit warning suggests that may be the approach which Wetherspoons takes. However, the backdrop remains unpredictable, and it is hard to say just how much it can shield its patrons from price increases, particularly as it needs to take account of a large debt pile."

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