Greggs PLC (LON:GRG) has seen a “significant” slowdown in sales growth as storms lashed the UK in February though it kept full-year expectations unchanged.
Like-for-like (LFL) sales were up 7.5% in the nine weeks to the end of last month compared with 9.2% in 2019.
READ: HSBC takes a bite out of Greggs and Restaurant Group
Analysts at Peel Hunt said this result was "somewhat remarkable" considering the tough trading and comparables.
Higher wages and pork prices are expected to drive up costs this year but the high street baker plans to absorb some of these to keep its products competitive.
The coronavirus outbreak is adding uncertainty, but the FTSE 250-listed firm still expects to make “year-on-year progress”.
In the year to 28 December, sales jumped 13% to £1.1bn with profit before tax up 21% to £114mln, including £700,000 from selling off property.
The chain benefited from boosting its internal operations and surge in demand for its own-produced items such as the vegan sausage roll and festive bakes.
At the year-end it was trading in 2,050 shops, with plans to expand to 2,500 and open later at some locations.
"With Easter round the corner, Greggs’ customers across the country will be treated to vegan hot cross buns following the success of the launch of vegan sausage rolls and steak bakes," analysts at the Share Centre said.
"Management is keen to address the perceived problem of queues by trialling and developing new technology and around 100 new shops are planned for this year along with drive-thru and other locations such as in supermarkets and at railway stations and airports."
Shares shot up 3% to 2,162p on Tuesday morning.
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