The pub operators have been poor performers on the stock market this year, dragged lower by the woes of The Restaurant Group, the City’s mistrust of JD Wetherspoon’s strategy and sluggish growth at several of the more indebted businesses. The first factor is almost entirely self-inflicted; none has much to tell us about the performance of the two sector leaders Greene King and Marston’s.
I have said before that the sector is dividing, with the better-funded businesses pushing ahead of the rest as customers demand higher standards in food and surroundings, all of which require hefty investment.
The general environment for consumer spending remains favourable, as Marston’s pointed out yesterday. Getting price increases through is difficult and they have to be earned by providing