Greggs PLC (LSE:GRG) will be looking to serve up another set of solid results when the bakery chain reports on its third-quarter trading next Tuesday, October 1.
Having impressed in recent months, shares are nearly back at their 2021 peak, leaving Greggs under pressure to keep up the positivity.
Shore Capital analysts appeared convinced that Greggs was on a solid trajectory though, noting earlier this month that the prospect of special dividends could emerge as cash balances grow over the coming years.
Analysts from the group forecast Greggs’ cash to sit at £160 million by late 2027, potentially warranting rewards over and above its current 2.2% dividend yield.
This would mark an increase from £141.5 million as of June, with the figure set to decline before growing again as plans unravel for 140 to 160 store openings this year.
‘Hold’ was the rating granted by Shore Cap, as, despite an “outstanding track record of growth”, analysts said shares were “well underpinned.
Greggs’ latest update is set to cover its third quarter, with AJ Bell analysts adding these should provide clarity over estimates for the chain to grow underlying pre-tax income by 11% to £168 million this year, alongside scoring 18% higher sales of £2 billion.
Profit had sat at £74.1 million at the half-year stage, after sales growth of 13.8% was recorded.