Aarin Chiekrie, equity analyst at Hargreaves Lansdown, says Greggs (LSE:GRG) served up a "tasty trading update" as sales accelerated in the second quarter, rising 7.5% to £800mn in the first 19 weeks of the year.
He attributes the momentum to continued menu tweaks that have drawn existing customers back and the addition of new salads and iced coffees that are helping the business appeal to a younger base, alongside progressing partnerships with franchisees and grocery retailers, and disciplined cost control, with Greggs being the UK retail bakery chain.
Chiekrie also flags that management has maintained cost‑inflation expectations of around 3%, has locked in around 85% of energy needs, reiterated a full‑year underlying operating profit target similar to last year (2025: £188mn) and is still aiming for about 120 net new shops despite only 20 net openings so far.
"And with costs still in check, management reiterated all full‑year guidance, pointing to profits landing around last year’s levels, which now looks a touch conservative to us if recent momentum continues," Chiekrie says.
