British baker and fast food chain Greggs kept its full year outlook, though it said underlying sales growth did slow in its latest quarter with consumers continuing to face uncertainty.
Greggs, famous for its sausage rolls, steak bakes and vegan alternatives, has proved a resilient performer through Britain's cost-of-living crisis and its shares are up 22% so far this year.
Company-managed shop like-for-like sales rose 5.0% in the 13 weeks to 28 September, its fiscal third quarter, having been up 7.4% in its first half, the company said.
Product Range
As well as new stores, Greggs said its growth was supported by broadening its range of products, such as new pizza and doughnut options, expanding opening hours into the evening, increased sales through deliveries and building loyalty with the Greggs App.
So far this year, it has opened a net 86 shops, including 43 relocations, taking the total to 2,559 shops.
Greggs said it now expected its cost inflation for 2024 to be towards the lower end of the 4% to 5% range it previously communicated.
'Whilst acknowledging ongoing economic uncertainty, the board expects the full year outcome to be in line with its previous expectations,' it added.
According to Shore Capital, Greggs is a business that is continuing to grow very well with scope to grow more (over 3,500 outlets, up 40%), all of which is captured by its premium equity ratings.
In March of this year, Greggs said it expected another year of growth in 2024 after posting a 13% rise in profit last year, helped by extending its opening hours into the evening and expanding in food delivery.
News by Reuters, additional reporting by ESM.
