Fast growth for food chain
Greggs delivers meaty trading update
Fast food chain Greggs has reported a 13th consecutive quarter of like-for-like sales growth, and says full year results will be slightly ahead of expectations
For the 52 weeks ended 31 December total sales grew by 7% and company-managed shop like-for-like sales grew by 4.2%.
Sales over the Christmas period were particularly strong, aided by a favourable trading pattern and, as a result, fourth quarter company-managed shop like-for-like sales grew by 6.4%. Excluding the final two weeks of the year fourth quarter like-for-like sales growth was 4.1%.
During the year the company opened 145 shops (including 56 franchised units) and closed 79, growing the estate to 1,764 shops.
It has 157 franchised shops operated by partners in travel and other convenience locations. As planned, the estate management programme included the closure of a number of freehold shops and an office building. This resulted in disposal gains in the year of £2.2 million, some £1.5 – £2 million higher than might be expected in an average year.
In 2016, a further 208 shops were converted to the “bakery food-on-the-go” format. The company expects to refurbish shops at a similar rate in the year ahead.
“Looking forward there is greater uncertainty in the trading environment with increased pressure on real income growth. We also continue to expect some industry-wide cost pressures in 2017 and these are likely to have a modest impact on margins in the short term.
“2017 will be another busy year of change as we continue to progress our investment in better systems and the transformation and development of our supply chain. Over the medium term we are confident of making further progress as we implement our plan to grow Greggs as a modern food-on-the-go brand.”