Greggs Reports Strong Q3 Sales Growth and Maintains Full-Year Outlook

British bakery and fast food chain Greggs has announced positive third-quarter results, with underlying sales rising and market share expanding. Despite the ongoing cost of living crisis, Greggs’ value offer has proven resilient, appealing to consumers whose income has been affected by high inflation.

During the 13 weeks ending September 30, Greggs’ like-for-like sales in company-managed shops increased by 14.2% compared to the same period last year, following a 16.0% rise in the first half. Total sales rose by 20.8%. The company’s popular products, including sausage rolls, steak bakes, vegan snacks, and sweet treats, have resonated with customers.

Greggs also highlighted that the rate of cost inflation has eased as it annualized the significant commodity-led increases experienced in 2022. This positive development, along with the company’s strategic initiatives, has contributed to its continued success.

The bakery chain expanded its store network by opening a net 82 stores in the quarter, bringing the total to 2,410. It also extended trading hours in more locations, increased customer engagement through its app, and further enhanced its delivery service by partnering with Uber Eats.

Greggs’ shares have seen a remarkable 45% increase over the past year, reflecting investor confidence in the company’s performance and growth prospects.

The company’s board maintains its full-year outlook, with analysts forecasting a pretax profit of £165 million ($199 million) for 2023, compared to £148.3 million in 2022.

Greggs’ ability to adapt to changing consumer preferences and deliver value to its customers has positioned it well in the competitive market. With its continued expansion and focus on customer satisfaction, the bakery chain remains a strong player in the food industry.