Picture supply: Getty Photos
The Greggs (LSE: GRG) share worth was already in bother earlier than the Iran warfare despatched traders right into a panic. After an excellent run, when the FTSE 250 bakery chain might do no mistaken, its gross sales, income and share efficiency all began to chill in late 2024.
Center East worries tensions to make a foul state of affairs worse by driving up inflation and leaving customers feeling even poorer. Traders who anticipated Greggs’ shares to take a beating could also be in for a shock although. They’re really up 5.8% over the past week. Solely six FTSE 250 shares did higher. What’s taking place?
FTSE 250 combined bag
Whereas traders obsess over geopolitical occasions, particular person firm information can nonetheless drive share costs. Final Tuesday (3 March), Greggs reported that whole gross sales rose 6.8% to £2.2bn within the 12 months to 27 December whereas like-for-like gross sales in company-managed outlets climbed 2.4%.
Chief govt Roisin Currie hailed a “resilient” efficiency, pointing to rising market share and continued strategic progress. That will clarify why the shares have held up. But these weren’t precisely stellar outcomes.
Underlying pre-tax revenue fell 9.4% to £172m, hit by quantity stress and rising fastened prices tied to manufacturing, logistics and expertise capability.
Greggs was additionally pretty downbeat in regards to the outlook. It expects market circumstances to “stay difficult” this 12 months. I don’t assume anyone would dispute that proper now.
Greggs insists its sturdy worth proposition ought to assist gross sales, however the brand new monetary 12 months appeared gradual, even earlier than Iran. In these straitened occasions even a cheeky journey to Greggs is beginning to really feel like a luxurious for a lot of.
The group captured the general public temper brilliantly for years, however Dan Coatsworth, head of markets at AJ Bell, has highlighted a “nagging feeling its proposition is changing into stale”, regardless of the corporate continually refreshing its menu.
Development, worth and revenue
I see his level. I’m not a pure Greggs buyer however I’ve popped in for the odd sausage roll or steak bake over time. Currently although, I haven’t a lot fancied it. Greggs admits dietary preferences are shifting. Customers are more and more searching for extra protein, extra fibre and smaller parts. The rising recognition of weight-loss medication might additionally have an effect.
Once I final checked out Greggs‘ shares on 1 March, the price-to-earnings ratio appeared severely tempting at 10.5. That was lower than half the extent seen throughout the growth years. 9 days later, it’s climbed to round 13.85.
The shift in all probability displays weaker earnings in addition to the latest bounce within the share worth. It’s first rate worth right this moment, however not dust low-cost. The trailing dividend yield has dipped barely to about 4.2%, though that also seems to be fairly interesting for revenue seekers.
Even so, I’m not vastly excited by these outcomes, and marvel if Greggs’ second has handed. Die-hard followers may take into account shopping for its shares right this moment, however I can see loads of FTSE 100 and FTSE 250 shares that look extra tempting within the present volatility.
Picture supply: Getty Photos
The Greggs (LSE: GRG) share worth was already in bother earlier than the Iran warfare despatched traders right into a panic. After an excellent run, when the FTSE 250 bakery chain might do no mistaken, its gross sales, income and share efficiency all began to chill in late 2024.
Center East worries tensions to make a foul state of affairs worse by driving up inflation and leaving customers feeling even poorer. Traders who anticipated Greggs’ shares to take a beating could also be in for a shock although. They’re really up 5.8% over the past week. Solely six FTSE 250 shares did higher. What’s taking place?
FTSE 250 combined bag
Whereas traders obsess over geopolitical occasions, particular person firm information can nonetheless drive share costs. Final Tuesday (3 March), Greggs reported that whole gross sales rose 6.8% to £2.2bn within the 12 months to 27 December whereas like-for-like gross sales in company-managed outlets climbed 2.4%.
Chief govt Roisin Currie hailed a “resilient” efficiency, pointing to rising market share and continued strategic progress. That will clarify why the shares have held up. But these weren’t precisely stellar outcomes.
Underlying pre-tax revenue fell 9.4% to £172m, hit by quantity stress and rising fastened prices tied to manufacturing, logistics and expertise capability.
Greggs was additionally pretty downbeat in regards to the outlook. It expects market circumstances to “stay difficult” this 12 months. I don’t assume anyone would dispute that proper now.
Greggs insists its sturdy worth proposition ought to assist gross sales, however the brand new monetary 12 months appeared gradual, even earlier than Iran. In these straitened occasions even a cheeky journey to Greggs is beginning to really feel like a luxurious for a lot of.
The group captured the general public temper brilliantly for years, however Dan Coatsworth, head of markets at AJ Bell, has highlighted a “nagging feeling its proposition is changing into stale”, regardless of the corporate continually refreshing its menu.
Development, worth and revenue
I see his level. I’m not a pure Greggs buyer however I’ve popped in for the odd sausage roll or steak bake over time. Currently although, I haven’t a lot fancied it. Greggs admits dietary preferences are shifting. Customers are more and more searching for extra protein, extra fibre and smaller parts. The rising recognition of weight-loss medication might additionally have an effect.
Once I final checked out Greggs‘ shares on 1 March, the price-to-earnings ratio appeared severely tempting at 10.5. That was lower than half the extent seen throughout the growth years. 9 days later, it’s climbed to round 13.85.
The shift in all probability displays weaker earnings in addition to the latest bounce within the share worth. It’s first rate worth right this moment, however not dust low-cost. The trailing dividend yield has dipped barely to about 4.2%, though that also seems to be fairly interesting for revenue seekers.
Even so, I’m not vastly excited by these outcomes, and marvel if Greggs’ second has handed. Die-hard followers may take into account shopping for its shares right this moment, however I can see loads of FTSE 100 and FTSE 250 shares that look extra tempting within the present volatility.
