Greggs PLC (LSE:GRG) shares increased by 6% to a two-year high above 3,100p after the baker reported interim results slightly ahead of City estimates, including a 19% dividend hike.
The maker of sausage rolls, steak bakes, and now also pizza, reported like-for-like sales up 7.4%, matching the rate reported in the first 19 weeks of the year, contributing to total sales swelling 13.8% to £960.6 million.
By the half-year stage, there were 2,524 shops in the chain after a net 51 shops were opened in the half-year, including 30 relocations, 99 openings, and 18 closures.
Greggs said it has a "strong pipeline" for more openings and is on track to add 140 to 160 net new shops in 2024.
The interim dividend increased to 19p per share as underlying profit before tax jumped 16.3% to £74.1 million.
Chief executive Roisin Currie said the group's success in the half was bolstered by "further broadening our range of on-the-go food and drink whilst making it more accessible to more customers".
She added: "Our cost outlook for 2024 remains unchanged, and we continue to trade in line with our plan. The board remains confident in the long-term growth strategy, and we are investing to support that growth."