Shares in Marstons soared on Tuesday after the hospitality firm said it would ramp up efforts to convert more than 100 of its pubs into sports bars.
The London-listed pub company said its new “Grandstand” format, which offers big screens and match-based food and drink offers, has been its “standout” performer this year.
The World Cup drove a huge uplift in takings for the UK’s pub firms over the summer, but Marstons is looking to sports fans to drive its sales long after the tournament. Shares in the firm gained nearly 20 per cent to 55p on Tuesday morning.
The group’s efforts to convert its existing pubs into new formats are “now a proven engine of growth, with Grandstand the standout performer,” it told shareholders.
Marstons converted 60 of its pubs into new formats last year and will revamp another 100 next year, with most of these set to be Grandstand formats.
These sports bar redesigns deliver a 30 per cent uplift in sales on average, the group said, and a return on invested capital of more than 30 per cent.
Marston’s Grandstand formats aim to bring “the unrivalled atmosphere of a stadium match or event” to the pub with three-metre-long screens and flexible tiered seating.
World Cup boosts pub firms
Announcing the first round of refurbishments, chief development officer Ed Hancock said: “We’re so excited to bring state-of-the-art technology and the best sporting experiences to local pubs, as part of this pilot phase.
“We’ve really taken market insight on board and have worked extremely hard on creating an unmissable atmosphere, as well as match-day ready food and drink menus.”
The World Cup caused the UK’s listed pub firms to surge in value this summer, as investors sought to make the most of booming sales.
JD Wetherspoon gained more than £75m in market value since the start of the tournament, according to analysis by AJ Bell, while up-market pub firm Young’s and Guinness maker Diageo saw their shares jump by 10.4 and 2.7 per cent.
Despite taking a boost from the tournament, Marstons saw like-for-like sales fall by 1.2 per cent across the year. Sales had been in negative territory before recovering to be broadly flat in recent months.
The group said it is now on track to beat market consensus for underlying full-year profit, which ranges from £76.1m to £83.2m.
Justin Platt, chief executive of the pub firm said: “We have delivered a third consecutive year of significant profit growth, margin improvements and strong recurring free cash flow.
“Our differentiated pub formats continue to drive excellent returns, and our guest satisfaction scores show that we continue to delight our customers – a credit to our talented, hard-working teams.”