The nation scoffing more sausage rolls and sandwiches today helped baker Greggs to boost its profit expectations for the year.
The onset of winter drove demand for Greggs’ hot drinks and food as the 1700-stores chain recorded a like-for-like sales jump of 5.2% in the 24 weeks to 13 December.
It might still be best known for sausage rolls, but Greggs said its newly launched “healthy” sandwiches with fewer than 400 calories were also helping ramp up demand.
Chief executive Roger Whiteside said: “Trading conditions have remained helpful but there is no doubt that customers are also responding to improvements in our product and service offer and to the investment we are making in the shop environment.”
Analysts backed the results. The shares rose almost 4%, or 25p, to 681.5p. Clive Black at Shore Capital pointed out Greggs is also benefiting from “materially more benign input costs, initially in flour, cream and pork and more latterly from oil. Greggs has toasted a grand year for the company”.
Greggs spruced up 216 of its branches last year and in January said it planned to close its in-store bakeries to focus more on “food on the go”.
