Regs boss Roger Whiteside raised profit forecasts today, renewed his prediction that Baker’s would grow to 3000 stores and had a simple message to Londoners: We’re coming.
Falling property costs in central London mean it plans to rapidly expand into the city centre, from just 19 stores to many more.
“We are coming to London with renewed vigor,” he said.
Today Greggs said sales grew 3.5% in the third quarter despite staff and supply chain problems.
There’s a daily crunch on a range of goods, but there aren’t sausage rolls just yet.
“It changes every day. Every morning I wake up and that’s, what’s the problem today? It’s difficult,” he said.
He said drivers don’t come, or goods get stuck away from the shops.
Despite this, Greggs promised to open 100 new stores this year, which will increase to 150 every year in the near future. The total time should increase from 2146 to about 3000.
City was forecasting a profit of £138 million for the year, but will raise that forecast today following the latest guidance.
Vegetarian food options once made fun of by some, including Piers Morgan, are selling out well.
On staffing issues, Whiteside said: “There seems to be a labor shortage in the market. We’ve gone into recruiting just like anyone else. Where’s everyone gone?”
Customers are sticking with Greggs, as other stores have the same problem. “We will go through this period, I don’t know how long it will last.”
Shares of Greggs rose 121p, up 4% to 2994p, which values the business at more than £3 billion.
Freetrade analyst Gemma Boothroyd said: “The sausage roll maker is increasing its investments in veganism, distribution and digital. But none of them are Greggs’ bread and butter, and it’s better to stick to what it knows best. When Britons crave Greggs, they don’t use a delivery app. They walk out the door and head to the nearest place. And when they get there, they’re usually looking for a healthy, meatless bite. are not.”
John Moore, Senior Investment Manager at Brewwin Dolphins, said: “Gregs is in strong shape and is back to perform well beyond where it was pre-pandemic. The investment plans set out today are ambitious, with the goal of doubling the business, reaching 3,000 stores, expanding its customer offerings, and even looking international. Although supply chain issues and rising input costs are very real near-term challenges, Greggs has been handling them well so far and has accounted for it in his strategy. If the company can execute its plan as it describes, over time Greggs could make the final jump in the FTSE 100.