Greggs shrugged off the wet weather in the first few months of the year to report sales growth of 7.4 per cent, according to a trading update published today.
The baker booked £693m in sales for the first 19 weeks of the year, compared to £609m at this point last year. It credited “delivery sales, evening trade and increased participation in the Greggs App” for the bump in transactions.
This morning, the fast food joint also announced it had reached a landmark of 2,500 shops for the first time.
Greggs said it had opened 64 new shops in 2024 so far, or a net gain of 27 shops. New locations included Embankment underground station, four in Tesco, and three in Sainsbury’s.
The group has a target of opening between 140 and 160 new shops throughout 2024 and said it remained confident it would achieve that goal.
“The fourth production line for our iconic savoury rolls and bakes at Balliol Park in Newcastle has now been commissioned, as planned, and will increase production capacity at the site by 35 per cent over time,” it added.
The group said a new range of Greggs over-ice drinks, such as coffee and lemonades, was performing well. It plans to expand the offering from its current 300 shops to up to 700 in the coming months.
“Pizza boxes have been in strong growth following a dedicated campaign and hot food continues to perform well, with our Southern Fried Chicken Goujons and Southern Fried Potato Wedges proving popular with customers,” the group added.
“We also continue to extend our range of healthier choices, introducing the vegetarian Pesto and Mozzarella Pasta and Feta and Tomato Pasta, alongside our award-winning vegan Sweet Potato Bhaji and Rice salad bowl.”
Analysts expect Greggs sales growth to total 17 per cent throughout 2024.
Peel Hunt analyst Jonathan Pritchard explained that the bakery had reported a strong start to trade in the first nine weeks of 2024, at 8.2 per cent, with that momentum seemingly continuing for the rest of the year so far.
However, Pritchard explained that poor weather over March and April may have impacted high street footfall, causing a slight slowdown in sales.
Greggs stock price has risen 7.6 per cent since the start of 2024, even after a March IT glitch saw 13m sausage rolls-worth wiped off its trading price.