Greggs Sales Growth Slows, but 'Peak Greggs' Not Here Yet
Greggs, the prominent UK bakery chain, has reported a deceleration in its underlying sales growth for the latest quarter. Despite this, the company maintains its full-year expectations, dismissing suggestions of 'Peak Greggs'.
In the face of analysts' claims that the UK has reached saturation point for Greggs, the company has stood firm. Greggs' shares have taken a hit, losing nearly half their value over the past year due to slowed sales growth. However, Greggs insists that its full-year expectations remain unchanged.
The third quarter saw a 1.5% rise in like-for-like sales at Greggs' company-managed shops. While July's hot weather negatively impacted trading, August and September saw improved sales. Greggs has attributed the slowdown to a combination of factors, including the cost-of-living crisis and increased competition in the food-on-the-go market.
Greggs' shares have suffered due to slowed sales growth, with analysts suggesting the UK has reached 'Peak Greggs'. Despite this, Greggs maintains its full-year expectations, attributing the slowdown to temporary factors. The company's performance in the coming months will be closely watched to see if it can overcome the current challenges.
