3 October 2023
If you are covering Greggs’ latest financial results, please find below a comment from Mamta Valechha, equity research analyst at Quilter Cheviot:
“Greggs delivered a strong trading update with total sales up more than 20% in the quarter. The company has managed to find areas of growth in a difficult market and as such continues to gain market share, driven by increased customer visits, and the ongoing development of the evening trade and trading across the Greggs App.
“Greggs has been really successful in recent years are diversifying its revenues streams and it is now seeing these efforts come to fruition. Evening trading is gaining further traction, with post-4pm sales now making up 8.8% of total transactions. Additionally, transactions made on its app have also accelerated to 13.1%, which should drive higher purchase frequencies through the Greggs loyalty scheme.
“It is now moving further into the delivery space following a successful trial with Uber Eats, who will sit alongside existing partner Just Eat. Greggs expects to have around 500 shops live by the end of October, and more to come in 2024. It is also continuing to roll out its store openings, with 82 net new shops opened this year. With work going on in the background with logistics and supply chains, Greggs is positioning itself really well for when this inflationary period subsides and consumer confidence returns to more normal levels.
“Indeed, Greggs is already seeing inflation pressures easing and given its compelling proposition we continue to think Greggs offers investors good value.”
