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Highlights
- According to Barclays data, the Brits spent approximately 27% more time in pubs and pitched tents over the weekend, ushering the restaurant business.
- As a result, spending on such camping and outdoor activities surged by 18% year-on-year.
- Sports centres, meanwhile, witnessed a healthy 17% increase in business.
Enjoying the weekend fervour and warmer weather, millions of Brits flocked to various pubs and bars in the country to enjoy the much-needed break. According to Barclays data, the Brits spent approximately 27% more time in pubs and pitched tents over the weekend, ushering the restaurant business.
The restaurant spending witnessed a huge jump, giving the business owners much-needed relief following their struggles amidst the energy pay hike. According to recent data, most business owners were concerned by the rising energy bills, with only a handful optimistic about the next 12 months.
With the UK's temperature showing a spike recently, most localities made the most of the warmer climate with various outdoor sports and activities. As a result, spending on such camping and outdoor activities surged 18% year-on-year, while sports centres witnessed a healthy 17% increase in business.
Experts view these figures as welcome news for the hospitality sector amidst the impact of inflationary pressures. They remain hopeful that consumers will offer their support to keep the venues busy as the peak summer season arrives.
Hospitality businesses have constantly urged government intervention as they continue to grapple with issues related to energy prices, expensive food and wage bills, and consumers' decisions to spend on only essentials. Not just that, but the recent staffing issues that plagued the industry have dented the businesses hard, making it tougher for them to run their operations.
Amid positive news, let's explore some hospitality stocks and see how they are doing.
JD Wetherspoon plc (LON: JDW)
JD Wetherspoon plc is a UK-based firm that operates pubs and restaurants nationwide. The FTSE-250 constituent, on 31 May 2023, was witnessing an uptick of 3.45% and was trading at GBX 735.00 at the time of writing. With a market cap of £914.77 million, JD Wetherspoon has given its investors negative annual returns of -2.10% and positive YTD returns of 66.62%.
InterContinental Hotels Group Plc (LON: IHG)
Another popular global hospitality firm, IHG plc, has several franchises and manages hotels for third-party hotel owners. The InterContinental Hotels Group plc, with a profit-to-earnings ratio of 32.06, holds a market cap of £9104.93 million. IHG stock, on 31 May 2023, too, was witnessing green as it was up by a moderate 0.64% and was trading at GBX 5348.00 at the time of writing. It has given its shareholders positive annual returns of 7.07%.
Mitchells & Butlers Plc (LON: MAB)
The operator of managed restaurants and pubs, Mitchells & Butlers plc, on 31 May 2023, held a market cap of £1205.52 million. On Wednesday, The British pub operator witnessed an uptick of 2.97% and was trading at GBX 207.80 with an EPS of 0.02. MAB's share value has witnessed a dip of -3.18% annually. However, this FTSE-250 constituent's profit-to-earnings ratio was negative at -1.04.
