If you’d spent £3k on JD Wetherspoon stock 4 years ago, this is what you’d have today


first_imgIf you’d spent £3k on JD Wetherspoon stock 4 years ago, this is what you’d have today See all posts by Michael Taylor Michael Taylor does not own shares in Wetherspoon. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. In 2016, JD Wetherspoon (LSE: JDW) traded below 600p. If you’d bought £3,000 worth of stock back then at 600p (500 shares), you’d currently have over £8,000 as Wetherspoon shares now trade above 1,600p.In an industry where pubs have been hit hard, with the closures of sites well-documented, Wetherspoon appears to be doing a roaring trade against the tide. But why?5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Well, it benefits from economies of scale. The business is nationwide and there are very few places without a single Wetherspoon pub. It has well and truly conquered Britain, and that gives it a lot of clout. When Wetherspoon turns up looking for a new supplier, the company can be aggressive on margins because of the sheer volume it will look to order. This means cheaper prices for customers, and cheaper prices mean the business proposition is more attractive for price-conscious consumers. It’s a virtuous circle, as more customers mean the company can be even more aggressive on margins!It caters for all times of the day   This is a key reason for Wetherspoon’s success. Unlike many pubs, its units are open almost around the clock. It starts with breakfast, with several options for food and hot drinks, and continues through to lunch — where it runs its ‘burger and a beer’ offer. The success of this means the business has expanded it to a ‘pizza and a beer’ too, and the company has invested in its food offering to make this not only attractive on price, but attractive to eat.Wetherspoon is also a force in the evening — with more dining offers, and a wide drinks selection. By keeping clients coming in throughout the day, and keeping them in the pub for longer, the units are collecting more revenue than some of its competitors.Focusing on its USP: serviceWetherspoon pubs are often well-staffed meaning waiting times are minimal. This is important, because if a client experiences a long wait time then they are less likely to re-visit — and they also might spread negativity telling friends and family about their experience. The company has made a great stride in this area with the release of the Wetherspoon app, which allows clients to purchase orders through the app and have staff bring this to the table. This has the benefit of automating the ordering process, saving Wetherspoon employees’ time, but it also frees up space at the bar and reduces waiting time.Stable growthIn the company’s last results, like-for-like sales were up 6.8% on the prior year in 2018. That’s good, because unless a company can grow its sales in its existing units, it will struggle to maintain growth.Free cash flow per share also grew to 92p from 88.4p. Growth in free cash flow has consistently been a prominent feature for historic stock market winners, and so if we want to find more stocks that can increase like Wetherspoon — it makes sense to check that our investments are generating healthy and increasing levels of free cash flow.  I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Enter Your Email Address Michael Taylor | Saturday, 4th January, 2020 | More on: JDW center_img Image source: Getty Images. “This Stock Could Be Like Buying Amazon in 1997” Our 6 ‘Best Buys Now’ Shares Simply click below to discover how you can take advantage of this. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. 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