Budget food-on-the-go outfit Greggs (GRG) reports it third quarter trading update on 3 October.

The company’s affordable food options have helped bake some resilience into its demand profile despite pressured household budgets. It continues to roll out new sites as well as keeping some existing sites open for longer to capture trade throughout the day.

Greggs has set a target to open 150 net new stores every year. After adding just 50 in the first six months of the year, investors will want to see evidence of a ramp up in the third quarter to provide confidence in its ability to meet its growth ambitions.

A strong start to the year for the shares has stalled and they have slipped since the summer. First half results reported on 1 August were robust and flagged easing cost inflation. However, a lack of earnings upgrades let to a round of investor profit taking from which the stock is yet to recover.

Berenberg analyst Matthew Chadwick says: ‘In recent weeks key topics of debate on Greggs have been the sustainability of its strong like-for-like growth amid a challenged UK macro backdrop, and the cost inflation outlook, which looks to have eased somewhat over the past 12 to 18 months.

‘As cost inflation comes down, we believe the business can return to double-digit pre-tax profit growth in financial year 2023 and subsequent years. The company’s ambitious roll-out target is supported by a healthy balance sheet.’

UK UPDATES OVER THE NEXT 7 DAYS

FULL-YEAR RESULTS

29 September: CAP-XX

5 October: Volution

HALF-YEAR RESULTS

29 September: CMO, Frenkel Topping, Directa Plus,
Personal Group

3 October: Inspiration Healthcare, S&U, Tortilla Mexican Grill

4 October: Tesco

TRADING ANNOUNCEMENTS

2 October: Pennon

3 October: Greggs

5 October: CMC, Ferrexpo

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