Greggs serves up a solid start to the year

Greggs has cooked up a strong start to the year and in the first 19 weeks of the year the bakery chain reported a 7.4% rise in like-for-like sales.

Greggs hit a milestone with 2,500 shops trading throughout the UK and expanded by opening a further 27 stores.

Their new range of ice drinks has performed well and Greggs are now planning to roll it them out across a further 300 shops.

“We have made a good start to the year with continued like-for-like growth in a challenging market, reflecting the strength of our strategic plan,” Greggs said.

Charlie Huggins, Manager of the Quality Shares Portfolio at Wealth Club said, “Greggs has made a solid start to 2024. Like-for-like sales are growing nicely and with no change to cost inflation expectations, the group has reiterated its full year guidance.

Greggs’ brand continues to resonate strongly with the UK consumer, despite the weak economic backdrop.  The roll out of new stores, extended opening hours and new menu items like pizza and pasta should all help to sustain this momentum.

That said, Greggs’ shares are not as cheap as its pasties. This means it will need to maintain strong progress in order to keep investors happy.