With the best will in the world and even when household budgets are under real pressure sometimes people are just too busy to make sandwiches. There is always going to be a place for food-on-the-go venues and Greggs’ offering is perfectly pitched in the current environment.
Cheap, hot, filling food is just what people are looking for and as the company continues to roll out new stores, there are a growing number of outlets where people can snap up these products.
AJ Bell’s Russ Mould said: “By introducing a range of plant-based items, like its vegan sausage roll, Greggs has demonstrated an ability to stay on top of shifting attitudes and appetites and win new customers over to the brand. Later openings for a large chunk of its stores should help growth, as will delivery and click and collect orders.
“Even with these advantages the near-20% like-for-like sales increase in the first nine weeks of 2023 is striking. The under-heated response to the numbers reflects the fact that a strong recent run on the stock market has seen a lot of good news already baked into the share price.
“There is no lack of ambition on Greggs’ part, with plans to get to more than 3,000 shops from the current number of just more than 2,300.
“While this is to be applauded, Greggs needs to be careful ambition does not tip over into hubris. Will the brand still be as popular, for example, when economic conditions have improved and people have a bit more money in their pocket?
“However, the company’s record over a long period provides confidence they know what they’re doing and Greggs can lay claim to being one of Britain’s best-run businesses.”