Shares in Marston's surged on Tuesday after the hospitality group announced plans to accelerate the conversion of more than 100 of its pubs into sports bars.
The West Midlands-based pub operator revealed that its new "Grandstand" format, featuring large screens and match-day food and drink promotions, has been its "standout" performer this year.
While the World Cup delivered a significant boost in revenues for Britain's pub operators over the summer, Marston's is banking on sports enthusiasts to sustain its sales well beyond the tournament. Shares in the company climbed nearly 20 per cent to 55p on Tuesday morning.
Grandstand hailed as proven growth engine
The group's programme to transform its existing pubs into new formats is "now a proven engine of growth, with Grandstand the standout performer," it told shareholders.
Marston's overhauled 60 of its pubs into new formats last year and plans to refurbish a further 100 next year, with the majority earmarked for the Grandstand concept, as reported by City AM.
These sports bar conversions 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.
Stadium atmosphere in local pubs
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.
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."
World Cup boost and profit outlook
The World Cup prompted UK-listed pub companies to surge in value this summer, as investors looked to capitalise on soaring sales.
JD Wetherspoon added more than £75m to its market capitalisation since the tournament kicked off, according to analysis by AJ Bell, while upmarket pub operator Young's and Guinness producer Diageo witnessed their shares climb by 10.4 and 2.7 per cent respectively.
Despite receiving a lift from the tournament, Marston's reported like-for-like sales declining by 1.2 per cent over the year. Trading had been negative before stabilising to roughly flat in recent months.
The company said it is now on course to exceed market consensus for underlying full-year profit, which spans 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."
