Greggs’ growth story shows signs of cooling
Published: 02:46 01 Oct 2024 EDT
Sausage roll slinger Greggs PLC (LSE:GRG) displayed a slower rate of growth in the third quarter against some admittedly tough 2023 comparatives.
Total sales were up 10.6% in the 12 weeks to 28 September, compared to 20.8% in the same period in 2023.
Company-managed shop like-for-like sales were up 5%, nearly a two-thirds below the 14.2% rate of growth in 2023.
Greggs has delivered “outstanding” results in the past couple of years, so sustaining the rate of post-pandemic sales growth was going to be a tall order for the wallet-friendly bakery chain.
But while sales growth is beginning to cool, Greggs’ management “expects the full-year outcome to be in line with its previous expectations”.
The chain has opened 86 net new shops year to date and is on track to open between 40 and 160 net new shops by the end of the year (including 50 relocations).
Cost price inflation is expected to be at the lower end of the 405% target range.
Greggs will be looking to capitalise on the pumpkin spice trend in the month ahead, with a new Pumpkin Spice Doughnut product to complement the traditional Pumpkin Spice Latte.
