Greggs PLC (LSE:GRG) has opened its 2,500th UK store, putting it on course to catch market leader Costa, which has about 2,670 outlets.
The bakery chain has already pencilled in a target for 3,000 stores and the rate of expansion is unlikely to slow, with 160 new openings scheduled for 2024.
Partnerships with Sainsbury’s have been a feature of the recent expansion with the Greggs market share by outlets climbing above 24%.
Deutsche Bank Numis commented that with a 9% market share in the pre-4pm food-to-go market, it is now focusing efforts on growing the evenings and delivery opportunities.
Greggs is already halfway to reaching its £2.4bn 2026 sales target having opened 292 shops, increased penetration of the evening day (£65m revenue) and embraced third-party delivery.
“We think together, these latter two growth channels could rise from 8% of sales to 12%,” though DBN adds delivery and evening targets, in particular, are more challenging given the perceived product offering and the long-established competition in these markets
Hold with a target price of 2,600p is its investment view.