Endeavour Group Shares Climb as Dan Murphy's Owner Extends Recovery Despite Cost-of-Living Squeeze on Pubs

SYDNEY — Shares of Endeavour Group Ltd., the owner of the Dan Murphy's and BWS liquor chains and a large network of pubs, rose 3.5% on Wednesday, extending a recent rebound days after the company reported steady first-quarter sales growth.

Endeavour shares gained 12 cents to A$3.55 in afternoon trade, near the session high of A$3.56, after touching a low of A$3.395. About 1.6 million shares changed hands, valuing the company at roughly A$6.4 billion.

The advance came despite a softer broader market. The S&P/ASX 200 fell 0.71% to 8,823.40 shortly after the open, with consumer discretionary stocks taking the biggest early hit.

The company's only filings on Wednesday were routine. Endeavour lodged final director's interest notices for Rod van Onselen and Joanne Pollard shortly after midday.

Recovery from record lows

The stock has been climbing since hitting a trough earlier this year. Endeavour shares reached an all-time low of A$2.77 on May 28, 2026, and have risen about 6% over the past week and nearly 17% over the past month. The shares are still about 1% lower than a year ago.

On Tuesday, the stock closed at A$3.43, up 1.78%, after a session in which more than 5.2 million shares traded.

First-quarter sales rise

The latest leg of the rally followed a trading update released alongside the company's annual meeting last week. Total group sales for the 14 weeks from June 29 to Oct. 4 were A$3.18 billion, up 2.8%, with retail sales rising 3.0% to A$2.58 billion on transaction growth at Dan Murphy's and hotel sales up 1.9% to A$603 million.

Managing Director and Chief Executive Jayne Hrdlicka said "our retail business continued to outpace the overall liquor market," pointing to a very strong July and more moderate consumer spending since.

Endeavour said retail had now recorded four consecutive quarters of sales growth after adjusting for the timing of Easter, and it added three net new Dan Murphy's stores and two net new BWS stores during the period.

Pubs feel the pinch

The hotels division was weaker. Growth at Endeavour's pubs slowed as cost-of-living pressure and higher fuel prices hit discretionary spending, while gaming revenue was flat.

Food and beverage sales were supported by a record 38% scan rate among members of the company's pub+ loyalty program.

That pressure could intensify. The update came days before the Reserve Bank of Australia lifted interest rates again. The central bank raised the cash rate to 4.85% on Tuesday, a decision ABC News reported had left mortgage borrowers licking their wounds.

Price war strategy

Endeavour has leaned heavily on lower prices to win back market share. At its annual meeting, the company stated that "Nobody beats Dan Murphy's on price," as it reinvested in everyday low pricing at Dan Murphy's and improved value at BWS.

The strategy has come at a cost to margins. For fiscal 2026, Endeavour reported group sales of A$11.2 billion, while underlying group EBIT declined 8.7% and retail EBIT dropped 17.6% as the company stepped up price investment, promotions and restructuring.

The company has also outlined a heavy investment year in fiscal 2027, with higher capital spending, operating expenses and finance costs expected.

The comparison base is now tougher. At the end of the first quarter, retail began cycling higher sales from the prior year, following the introduction of lower shelf prices and an uplift in industry-wide promotional activity.

Leadership and outlook

The annual meeting was a milestone for the company's leadership. It was the first for Hrdlicka as CEO, and Chair Tim Poole told shareholders the business had fallen short of expectations since listing in 2021, while adding that the group has the right foundations in place.

Hrdlicka said the second quarter remains a key trading period, taking in Spring Racing, Christmas, New Year and the start of summer holidays.

Analysts divided

Brokers remain split on the stock. RBC Capital downgraded Endeavour to Underperform from Sector Perform with a price target of A$2.90, while Goldman Sachs analyst Peter Marks initiated coverage with a Sell rating and a A$3.30 target. Citi analyst Sam Teeger upgraded the stock to Buy from Neutral with a price target of A$4.10.

UBS has raised its price target by 7.7% to A$3.50, and Bell Potter lifted its target by 6.5% to A$3.30. At Wednesday's price, the shares are trading above both of those targets.