Greggs plc's (LON:GRG) new range of wraps are doing the business, but the rising cost of ingredients is clipping profits, said the bakery chain.
New autumn range which include an 'all day breakfast' wrap and Thai chicken soup in addition to pies and sausage rolls, have added some variety to the menu, while breakfast deals are giving a boost to volumes early in the morning.
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Sales in the three months to September rose by 8.6% compared to 5.6% a year ago, while like-for-like sales were 5% stronger (2.8%).
Food-ingredient cost pressures remain a headwind, said the Newcastle-based group, although it hopes the rate of increase will start to ease towards the end of the year.
Guidance for the full year has been left unchanged as a result in spite of the higher sales.
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Greggs added it is on course to open 140-50 stores and close 40-50 this year. Currently it has 1,830 including 194 franchises, with 98 new shops opened so far while 32 have closed.