Greggs Shares Decline After Trading Update

Greggs has upheld its full-year forecast, despite reporting a slowdown in underlying sales growth in the latest quarter as consumers navigate ongoing uncertainty.

As of 4:48 am (0848 GMT), Greggs shares were down 3.1% at £3,028.

In a recent update, the company revealed that like-for-like sales at its company-managed shops rose by 5% in the 13 weeks ending September 28, a decrease from the 7.4% growth seen in the first half of the fiscal year.

Greggs attributed this growth not only to the opening of new stores but also to a wider range of products, including new pizza and doughnut options, extended evening operating hours, increased delivery sales, and enhanced customer loyalty through its mobile app.

“While we recognize the ongoing economic uncertainty, the Board expects the full-year performance to align with earlier expectations,” the company stated.

This year, Greggs has opened a net total of 86 shops, which includes 43 relocations, bringing its total number of locations to 2,559.

Furthermore, Greggs now expects cost inflation for 2024 to be at the lower end of the previously indicated range of 4% to 5%.