Greggs Q1 sales beat forecasts
Greggs first quarter sales have beaten expectations thanks to a new range of healthier products.
Food & Drug Retailers
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16:54 03/05/24
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Greggs
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In an update on Wednesday, the bakery chain said its improved range of freshly-made sandwiches and the strong sales of its breakfast meal deals helped total sales to grow 5%. Additionally, like-for-like sales rose 5.9% over the quarter.
The group also announced it had opened 24 new shops but closed 18 during the period.
Greggs said it would not carry out the previously announced share buyback, but it declared a special dividend of 20p per share, which will be paid in July to shareholders.
Looking ahead, the company said it expects to report first-half results ahead of expectations thanks to favourable market conditions and low input cost inflation, while the second half will be challenged by strong sales comparables and less certain cost outlook.
Shore Capital analysts gave a 'buy' recommendation and said the results were "a clear demonstration of the renewed and growing potency of Greggs product offer and new ‘food to go format’."
The broker added: "Greggs continues to surprise us on the strength of its trading momentum, whilst the confirmation that a special dividend could be a recurring feature of the investment case is a further material positive in our view."
Shares were up 1.76% to 1095p on Wednesday at 09:40.