Shares in Greggs plc (LON:GRG) gained 3.65% on Monday despite reporting lower sales since the start of the year than in 2015, amid softer trading in March.
Greggs said total sales in the first 18 weeks of 2016 rose 5.7% against 5.9% a year ago, with like-for-likes up 3.7% versus 6% last time.
The group said it was affected by softer high street conditions in March, although trading recovered in recent weeks.
Greggs said it was pressing ahead with plans to streamline its bakery supply operations by closing three bakeries.
It is shutting its smallest site at Sleaford in Lincolnshire immediately and expects to close a bakery at Twickenham in the fourth quarter of this year followed by Edinburgh in the second quarter of 2017.
The group, which has been refurbishing its shops, said it had refitted 55 outlets, opened 43 stores and closed 21.
It now has 1,720 shops comprising 1,592 company-managed outlets and 128 franchises.
It said breakfasts, hot sandwiches, improved salads and 'balanced choice' lower-calorie products were driving growth
The introduction of flat white coffee was also underpinning double-digit growth in hot drink sales, it added.
Chief executive Roger Whiteside said: "We have made a good start to the year.
"Input cost inflation remains low despite increased wage costs and, with a strong pipeline of product initiatives and plans to invest in our shops and supply chain, we expect to make progress in line with our previous expectations."
Clive Black at Shore Capital said: "We deem such a trading performance to be very robust indeed against what has been a demonstrably challenging back drop for the majority on the UK high street."
N+1 repeated a ‘buy’ recommendation and described it as a ‘good update’.
In a note, a broker said: “Whilst the consumer environment has been more challenging since the start of 2016 and in March in particular we understand that April has proved much better.”
In trading, Greggs shares were up 41p or 3.84% changing hands at 1,109p.