RE: Trading update13 Jul 2022 16:44
I looked at JDW a few years ago and decided against, Bought other shares and lost on them instead!
Without doing much (any) research it struck me that, full though the pubs clearly were, the per head spend was clearly small, the margins wafer thin, and growth prospects minimal or nil - there is near saturation in any worthwhile areas of the country. I have just opened the app sitting here near Ironbridge. It is suggesting 10 locations within 20 miles. And looking at the SP, it appears to be at the same level as October 2006 and declining. Add to that TM wont work forever.
Maybe the chain needs to shrink, selective closures (maybe the consistent underperformers in each area), bring the premises a little more upmarket and raise prices by say 20%. Their buying power would still be massive, net cashflow hopefully higher, wage bill and business rates lower, image enhanced to bring in people who currently shun them because of it. Make it somewhere you want to go rather than a cheap alternative. I was on a trip recently in a party that included a retired NHS doctor. We ate out every night, 6 of us. In Poole most were up for a 'spoons night. The doctor made it pretty clear 'spoons was beneath him so 6 people didn't go to there. Lidl and Aldi started too cheap but revised things upwards -go and check out their car parks these days