Wetherspoon pubs: Any sign of economic slowdown?

Diageo is forecast on Thursday to be toasting a 11% rise in full-year pre-tax profit to �2bn as key brands including Gordon's Gin, Smirnoff and Guinness continue to perform strongly.

The drinks are also flowing at JD Wetherspoon, which is expected on Friday to announce another year of strong profit growth and new pub openings.

Burger King suffers

Analysts say Pizza Express is unlikely to be able to maintain the very impressive like-for-like sales growth of 10% it clocked up in the first half of its business year but will not miss that figure by much.

Investors will be hoping for more news on the chain's international expansion plans as well as on expansion of the brand in the UK through initiatives such as the San Marzano takeaways.

Diageo investors are expecting good news on the performance of key drinks brands but will want to know if the sluggish performance of non-core businesses has continued and, if so, what action is being taken.

The US Pillsbury business is expected to show the effects of US economic slowdown while the Burger King fast food restaurant chain has suffered from consumer worries over "mad cow" and foot-and-mouth disease.

Waiting for regulators

Among outstanding issues is the long-awaited flotation or trade sale of Burger King, for which Diageo has yet to set a timetable.

Analysts will also be keen for any update on clearance by US and Canadian regulators of the $8.15bn purchase of Seagram's drinks business by Diageo and France's Pernod Ricard.

Last month, Pernod said it expected the deal to be cleared in September.

The US Federal Trade Commission has also yet to approve Diageo's sale of Pillsbury to General Mills, which was agreed more than a year ago.

Consumer spending still buoyant

JD Wetherspoon is forecast to report like-for-like sales growth of more than 6%, with margins steady at about 12% and pre-tax profits up about 25% to �45m-46m.

Analysts expect the group to say it has opened about 100 new pubs in its last business year - a sign of the buoyancy of UK consumer spending.

But they will be watching closely for any hints that Wetherspoon is seeing a slackening in spending as the economy slows.