British pastry shop chain Greggs (GRG.L) stated September was its toughest month of the 3rd quarter in the middle of fresh enhancements to its fall food selection, yet that still had not been sufficient to quit sales softening total because duration.
A pumpkin seasoning doughnut, a Mexican bean and spicy cheese flatbread, along with an all-day morning meal baguette were amongst the products included in the Greggs fall food selection, which introduced on 29 August.
The food-on-the-go chain likewise introduced a brand-new pizza choice, BARBEQUE Chicken, and stated its pizza sharing boxes were readily available in 4- and six-slice boxes.
Greggs stated September noted its toughest month of the 3rd quarter, in a trading update launched on Tuesday.
However, while Greggs reported ongoing sales development, this most current upgrade revealed some stagnation. Like- for-like sales expanded by 5% in the 3rd quarter, though this was slower than the 7.4% it taped in the initial fifty percent and listed below development of 6.5% year-to-date.
Greggs shares were down 4.5% following this most current upgrade, though the supply is still up almost 15% year-to-date.
Read a lot more: Trending tickers: Apple, Greggs, Stellantis and Super Micro Computer
The business stated the development that it did see in the 3rd quarter was sustained by its “menu development and further progress in extended trading hours and new digital channels”.
The pastry shop chain stated that while it was “acknowledging ongoing economic uncertainty, the board expects the full year outcome to be in line with its previous expectations”.
In enhancement, Greggs stated it currently anticipated the degree of expense rising cost of living to be in the direction of the reduced end of the 4% to 5% it formerly anticipate.
Russ Mould, financial investment supervisor at AJ Bell, stated: “Greggs has pursued multiple avenues to achieve growth in recent years, including home delivery, evening trading and a successful move into vegan products, but there are some signs in its latest update that it may need to pull another rabbit out of the hat.”
He said that the company was “not resting on its laurels” with continued innovation in its product range and an “ambitious store roll-out programme”.
Read more: FTSE 100 LIVE: European markets mixed as Israel starts ground invasion in Lebanon
Having already opened a net 86 new shops so far this year, which includes closures and relocations, Greggs said it was on track to meet its target of opening between 140 and 160 net new stores for 2024.
Openings in the third quarter included two drive-thrus in Bristol, at Abbeywood Retail Park and Harlequin Business Park.
However, Mould said the “nagging question for investors is when does Greggs hit saturation point?”
“Greggs’ heavy investment in infrastructure to support further outlets suggests it sees continuing scope for growth for some time to come, and an excellent track record going back decades means it is likely to be afforded some trust by shareholders,” he said. “However, achieving the scale of expansion which Greggs has outlined will not be easy and there could be some speed bumps along the way.”
Download the Yahoo Finance application, readily available for Apple and Android
