{"id":43968,"date":"2025-10-01T11:35:15","date_gmt":"2025-10-01T11:35:15","guid":{"rendered":"https:\/\/quickassetsmarket.com\/index.php\/2025\/10\/01\/greggs-stock-soars-on-profit-guidance-but-analysts-split-on-growth\/"},"modified":"2025-10-01T11:35:15","modified_gmt":"2025-10-01T11:35:15","slug":"greggs-stock-soars-on-profit-guidance-but-analysts-split-on-growth","status":"publish","type":"post","link":"https:\/\/quickassetsmarket.com\/index.php\/2025\/10\/01\/greggs-stock-soars-on-profit-guidance-but-analysts-split-on-growth\/","title":{"rendered":"Greggs stock soars on profit guidance, but analysts split on growth"},"content":{"rendered":"
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Shares of British baker and fast-food chain Greggs rose 11.5% to 1,790p on Wednesday, topping the FTSE mid-cap index, after the company reaffirmed its full-year profit guidance despite a slowdown in underlying sales growth during the third quarter.<\/p>\n

By 9:10 am, the stock had given up some of the gains and was higher by about 7%. <\/p>\n

The chain, known for its sausage rolls, steak bakes, vegan alternatives and sweet treats, said like-for-like sales at its company-managed shops increased 1.5% in the 13 weeks to September 27, down from 2.6% growth in the first half of the year. <\/p>\n

Total sales for the quarter climbed 6.1%.<\/p>\n

“While unusually high temperatures persisted throughout July, which held back performance during the month, trading improved in August and September in more stable conditions,” Greggs said on Wednesday.<\/p>\n

Profit guidance maintained but analysts question cut to store-opening expectations<\/h2>\n

Greggs said its board\u2019s expectations for the full-year outcome remain unchanged, reassuring investors who had worried about slowing sales and rising costs. <\/p>\n

Analysts at Jefferies described the update as encouraging, noting they expect like-for-like sales to accelerate into the fourth quarter.<\/p>\n

They, however added that the UK bakery chain’s cut to store-opening expectations this year will likely add to concerns that Greggs has reached its maximum growth potential even though they said they did not agree with this narrative. <\/p>\n

Greggs now expects to open around 120 net new shops in 2024, down from earlier guidance of 140 to 160. <\/p>\n

The chain has opened 57 net new shops year to date, with roadside locations outperforming city centre outlets.<\/p>\n

“Greggs’s slower shop rollout will continue to be a concern, even though the UK bakery chain said its pipeline of openings remains strong into next year,” said RBC Europe analyst Ross Broadfoot.<\/p>\n

The group has guided in line with consensus for this year of about 187 million pounds, but Broadfoot said the lowered guidance will involve further small downgrades for many.<\/p>\n

Price increases to be introduced amid inflation<\/h2>\n

Chief Executive Roisin Currie told Reuters the company would raise prices on a limited number of products this week, marking the first adjustment since May. <\/p>\n

\u201cIt will be a small number of products, a small amount, and we will be landing that this week,\u201d she said.<\/p>\n

The move comes as UK grocery inflation stood at 4.9% in September, according to data from market researcher Worldpanel, putting further pressure on consumer spending.<\/p>\n

Market reaction and investor sentiment<\/h2>\n

Despite Wednesday\u2019s surge, Greggs\u2019s shares remain down about 39% this year, reflecting investor unease about slowing sales growth and speculation that the chain may have reached \u201cpeak Greggs\u201d given its already substantial store footprint across the UK. <\/p>\n

The company has pushed back against that view, pointing to opportunities in new formats and roadside expansion.<\/p>\n

While official figures showed British consumers spent more in August, retailers remain cautious ahead of the government\u2019s budget on November 26, where speculation of tax rises and a weakening jobs market could affect trading in the crucial festive period.<\/p>\n

Greggs\u2019s ability to stabilise performance in the coming quarter, while managing costs and store expansion prudently, will be closely watched by both analysts and investors.<\/p>\n

The post Greggs stock soars on profit guidance, but analysts split on growth<\/a> appeared first on Invezz<\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Shares of British baker and fast-food chain Greggs rose 11.5% to 1,790p on Wednesday, topping the FTSE mid-cap index, after the company reaffirmed its full-year profit guidance despite a slowdown in underlying sales growth during the third quarter. By 9:10 am, the stock had given up some of the gains and was higher by about <\/p>\n","protected":false},"author":1,"featured_media":43969,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-43968","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-investing"},"_links":{"self":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/43968","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/comments?post=43968"}],"version-history":[{"count":0,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/43968\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media\/43969"}],"wp:attachment":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media?parent=43968"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/categories?post=43968"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/tags?post=43968"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}