Greggs rolls through high street gloom, shares soar

Greggs rolls through high street gloom, shares soar

Shares in Greggs (LON:GRG) soared on Monday after it raised its expectations for full year profit following a “very strong” trading performance in the fourth quarter.

Shares in the UK’s largest bakery chain were up 17% during Monday morning trading.

For the six weeks to 9 November, total sales were up 12.4%.

Additionally, company-managed shop like-for-like sales increased 8.3% over the six week period.

The retailer’s strong results beats the gloomy trading conditions to hit the UK high street.

“Trading performance in the fourth quarter to date has continued to be very strong, despite the strengthening comparators seen in 2018,” Greggs said in a trading update on Monday.

“Sales growth continues to be driven by increased customer visits and has been stronger than we had expected given the improving comparative sales pattern that we saw in the fourth quarter last year,” Greggs continued.

Operational costs remain well controlled and, whilst the comparative sales become stronger still in the balance of the year, the Board now anticipates that full year underlying profit before tax (excluding exceptional charges) will be higher than our previous expectations,” Greggs said.

Greggs has over 2,000 retail outlets across the country.

At the beginning of October, the bakery chain said that it had continued to see very strong trading throughout the third quarter and its autumn menu has now hit the shelves.

Its vegan sausage roll, specifically catering for those following a vegan diet, has been very popular. Greggs said earlier this year in March that the launch of its vegan sausage roll helped boost an exceptional sales performance.

The vegan-friendly product is made from meat substitute quorn and was launched at the start of the year as part of the Veganuary campaign.

Shares in Greggs plc (LON:GRG) were up on Monday morning, trading at +16.32% as of 09:59 GMT.

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