Greggs PLC (LSE:GRG) stock jumped on Thursday after the bakery chain reported strong like-for-like sales driven by growth in transaction numbers over the year to December.
Updating on Wednesday, the FTSE 250-listed baker said LFL sales jumped by 13.7% over the year and by 9.4% for the fourth quarter, with “reduced contribution from price inflation”.
Strong trading in the final quarter, which Greggs said was aided by high demand for festive products, including its meaty and vegan 'festive bake' options and a Christmas lunch soup, will result in full-year earnings coming in as expected, it added.
The strong LFL performance was said to reflect the popularity of the brand, developments to the product range and efforts to "make Greggs more accessible" through digital channels and extended trading hours.
Net store openings amounted to 145 for the year, taking the total number of Greggs sites to 2,473 by late December.
A new partnership with UberEats was offering delivery from 710 sites by year-end from roughly 500 in October, adding to the existing Just Eat collaboration.
Total sales increased by 19.6% to £1.8 billion, while net cash ended the year at £195 million compared to £192 million a year earlier.
"We enter 2024 with plans to continue to invest in our shops and expand supply chain capacity to deliver the growth strategy, supported by our strong balance sheet,” said chief executive Roisin Currie.
“Our value-for-money offer, and the quality of our freshly prepared food and drink continue to evolve and position us well for further progress in the year ahead.”Shares climbed 9.5% to 2,710p on the news.