JD Wetherspoon (JDW) reported Q3 16 results (13 weeks to 24 April 2016) which were slightly better than our estimates. The lfl revenue was up by 3.8% (our estimate: 2.8%) and total sales increased by 5.5% (vs Q2 16: 6.3%, Q1 16: 6.1%; our estimate: 4.6%). The operating margin declined to 6.4% (-110bp yoy, +10bp qoq, vs our estimate: 6.6%) on the back of a c.8% increase in hourly wages since August 2015. On a ytd basis, the lfl revenue increased by 3.2% (-40bp yoy) and total sales was up 5.9%
