Greggs share price jumps as baker ups full year expectations

 
Catherine Neilan
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Greggs is forecasting growth ahead of expectations (Source: Getty)
Greggs' share price jumped this morning on the back of results out this morning showing the baked goods retailer is on a (sausage) roll.

The figures

Greggs' own shop like-for-likes climbed 4.9 per cent for the 13 weeks to 3 October, with total sales up five per cent.
Year-to-date own shop sales are up 5.6 per cent, while total sales are up 5.1 per cent.
The YTD figures show increased momentum at the chain, with sales up 3.9 per cent in the equivalent period last year.
Full year sales are expected to come in ahead of expectations. On the back of that, Greggs' share price was up 5.1 per cent at pixel time.

Why it's interesting

Having weathered the pasty tax, and turned its focus onto healthier foods, Greggs has been on a roll for some time now.
The “balanced choice” range has been tempting in more customers, as have improvements to its own-label drinks with no added sugar.
In the year-to-date, Greggs has also completed 158 shop refurbishments, and expects to complete 200 this year. A further 20 bakery cafes have been converted to “food on the go” formats, improving capital return.
The sales rise has come while the firm has also managed to control costs.

What Greggs said

“Market conditions remain favourable with low cost pressures and a stronger consumer environment,” Greggs said. “We expect this to continue through to the end of the year after which increases to wage rates will drive greater inflationary pressure.
“Our standard rate for hourly-paid shop staff is already above the National Minimum Wage and we will maintain a competitive position in the market going forward.
“Our sales performance is slightly ahead of our previous plan and, whilst comparatives will stiffen further in the fourth quarter, sales will benefit from additional shop openings. As a result we expect to deliver good growth for the year, slightly ahead of our previous expectations, and further progress against our strategic plan.”