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Greggs shares drop following trading update

Published 01/10/2024, 06:50 pm
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Investing.com -- Greggs (LON:GRG) maintained its full-year forecast, although it reported a slowdown in underlying sales growth during its most recent quarter as consumers continue to experience uncertainty.

At 4:48 am (0848 GMT), Greggs was trading 3.1% lower at £3,028.

In an update on Tuesday, the company reported that like-for-like sales in its company-managed shops increased by 5% in the 13 weeks leading to September 28, down from a 7.4% rise in the first half of the fiscal year.

Greggs attributed its growth not only to the opening of new stores but also to expanding its product offerings, including new pizza and doughnut selections, extending operating hours into the evening, boosting delivery sales, and fostering customer loyalty through the Greggs App.

“Whilst acknowledging ongoing economic uncertainty, the Board expects the full year outcome to be in line with its previous expectations,” the company said in a statement. 

To date, the company has opened a net of 86 shops this year, which includes 43 relocations, bringing the total to 2,559 locations.

Additionally, Greggs now anticipates that its cost inflation for 2024 will be at the lower end of the previously communicated range of 4% to 5%.

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