Greggs Reports Resilient Sales Growth and Maintains Full-Year Outlook

British bakery and fast food chain Greggs has announced positive results for the third quarter, with underlying sales growth and an increase in market share. Despite the ongoing cost of living crisis, Greggs’ value offer continues to resonate with consumers, particularly its popular sausage rolls, steak bakes, vegan snacks, and sweet treats.

During the 13 weeks leading up to September 30, Greggs’ like-for-like sales in company-managed shops rose by an impressive 14.2% compared to the same period last year. Total sales also saw a significant increase of 20.8%. These figures follow a strong first half of the year, where sales were up 16.0%.

The company’s ability to navigate the challenges of cost inflation is evident, as the rate of inflation has eased, and Greggs has successfully absorbed the significant commodity-led increases it faced in 2022. This resilience has contributed to the company’s positive outlook for the full year.

Greggs’ expansion efforts have also been fruitful, with the opening of 82 net new stores in the third quarter, bringing the total store count to 2,410. The company has extended trading hours at more locations, increased customer engagement through its app, and further enhanced its delivery service by partnering with Uber Eats.

Analysts had previously predicted a pretax profit of £165 million ($199 million) for 2023, up from £148.3 million in 2022. Greggs’ shares have seen a remarkable increase of 45% over the past year, reflecting investor confidence in the company’s performance.

With its continued focus on delivering value and meeting consumer demands, Greggs remains well-positioned in the competitive fast food market. The company’s ability to adapt and innovate has allowed it to thrive, even in challenging economic times.