Greggs had a good year and a good fourth quarter. On Wednesday, Greggs shares jumped 6% as the company reported that full-year sales for 2023 were up 19.6%, while Q4 like-for-like sales were up 9.4%.
Full-year sales totalled £1.8 billion, with like-for-like full-year sales rising 13.7%.
The good news sent Greggs shares flying 6% higher at the time of writing on Wednesday.
“A solid final quarter means Greggs can tick off 2023 as a year of real progress. Double-digit growth in like-for-like sales was down to extended opening hours, more delivery options, improving supply chain capacity, and a fresh new suite of tasty treats. Festive Bakes and Chocolate Orange Muffins lead the way over Christmas, but bears may point to sales growth slowing over the year, and the fourth quarter was the lowest of 2023,” said Matt Britzman, equity analyst at Hargreaves Lansdown.
“That’s largely because Greggs was able to limit price hikes as inflation cooled. Longer-term, that’s a net positive. One of Greggs’ key strengths is offering a lower-value treat, and keeping that proposition intact is key, especially when consumer incomes are stretched. The most important thing is to see volumes trend higher, and that remains the case,” he added.
Greggs has also declared plans to open 140–160 net new shops in 2024.
“The job’s not done. Expect to see more progress over 2024 as investment continues into the digital offering, delivery partnerships, and expanding the store estate,” Britzman stated.
