Greggs sees jump in like-for-like sales following store refits, closures
Bakery and fast-food retailer Greggs reported a slight acceleration in year-to-date sales to a 3.5% clip, as like-for-like sales registered a strong rebound.
Greggs
2,778.00p
16:35 18/04/24
Like-for-like sales rebounded by 5.4% during the 11 weeks ended on 13 September, versus a 1% fall in the same period of the year before, as total sales increased by 4%.
That followed the refit of 153 of its establishments and the closure of 43 underperforming stores.
Management also highlighted further margin benefits from commodity deflation and “excellent” cost control, alongside faster progress with structural efficiency initiatives.
Following the update from the company Clive Black, Director of Research at Shore Capital Stockbrokers, raised his CPTP estimate for the company’s fiscal year 2014 by 12% from £46.4m to £52m.
The analyst also told clients that his profit forecasts for the fiscal year 2015 were also under review and expected to increase.
Shore Capital has upped its recommendation on the stock to ‘buy’ from ‘hold’.
As of 08:36 shares of Greggs were 13.06% higher to 606p.