Why the Marston’s Share Price Spiked 6.02% High, Then Later Fell

The Marston’s PLC (LON: MARS) share price spiked 6.02% after issuing a trading update for the 52 weeks to 30 September 2023. The company’s total retail sales from its franchised and managed pubs were up 11.3% compared to last year. 

In the 52 weeks, the company witnessed a robust +10.1% growth in like-for-like sales compared to FY2022. This encouraging performance was evident in the drink and food sales, underscoring the enduring appeal and resilience of the firm’s primarily suburban pub estate.

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For the 10 weeks spanning from July 23, 2023, to September 30, 2023, like-for-like sales showed a positive trend with a +7.7% increase compared to FY2022. This period was marked by unfavourable weather conditions during the summer months of July and August, which impacted drink sales, making them lag behind food sales.

However, in the most recent five weeks, the company recorded a substantial surge of +12.0% in like-for-like sales, setting up a robust momentum for the upcoming financial year. Both food and drink sales demonstrated robust growth during this period.

Our core strategy focuses on delivering affordable pub experiences, ensuring our guests enjoy quality environments inside and outside our establishments. The demand from our customers continues to be promising, and we have consistently improved guest satisfaction measures throughout the year.

Building on its earlier announcements in the Interim Results for May and the July trading update, Marston’s has successfully tested a franchise-style model in 19 food-led managed pubs, complementing its 714 wet-led pubs.

The company was delighted with the results of the above pilot program, with sales growth significantly outperforming its broader food business. The company is on track to achieve its goal of 50 food-led franchised pubs by FY2024.

As previously communicated, the company has already locked in its energy costs for FY2024 and secured a significant portion of its food and drink costs for the year, providing it with a high degree of confidence in the upcoming financial year.

Throughout the year, Marston’s successfully generated £55 million from the disposal of non-core pubs, net of VAT. 

Marston’s share price. 

The Marston’s share price spiked 6.02% higher to trade at 30.48p, from Tuesday’s closing price of 28.75p.