Most of Greggs’ sales will be inflation-linked, says Peel Hunt, which remained a hold on the sausage roll specialists and kept its target price of 2,500p.
Sales were up 15.7% in the last 10 weeks of the reporting period and 17.9% in the year to 13 May, which is a “perfectly acceptable level.”
“The new store pipeline is strong and there is no change to guidance on input costs (they will rise by roughly 10% this year, the same as last year),” said the broker.
Peel Hunt analysts forecast full-year profit before tax of £160mln, just below the consensus of £163mln.