Greggs PLC (LSE:GRG), the bakery chain, could post a strong fourth-quarter update on Wednesday 10 January if results from Lidl and Aldi are anything to go off.
Although overall consumer spending data during the festive period failed to grow on 2022 figures, discount supermarkets Lidl and Aldi reported some of their best sales periods ever.
Analysts at Liberum believe this could provide a positive read across to other discount retailers like Greggs, B&M and Primark-owner Associated British Foods.
Greggs will have the added benefit of slowing cost inflation this time around, with the baker having promised to execute promotions during the first quarter to offer its customers “exceptional value”.
Investors will also be keen to find out how its delivery partnership with Uber has been going since it was rolled out in the fourth quarter.
Around 500 shops have been working with the delivery service since October and, should it be successful, the group could reveal expansion plans for the programme next week.
Full-year results are expected to fall in line with consensus, barring any huge setback suffered in the last three months.
Greggs is rated a ‘buy’ by Liberum, which targets a share price of 2,800p for the stock.
Shares are currently trading at around 2,575p.