Greggs PLC (LON:GRG) has temporarily closed its Leeds distribution centre after under twenty employees were tested positive for COVID-19.
The area is now set to go under testing and tracing while the baker will have to deep clean the facility.
READ: Greggs passes on dividend as sales still down by two-thirds due to social distancing
Shore Capital noted that this will be an inconvenience for the chain, since other plants will have to pick up extra work, but not a major to hit the financial performance.
“What is more problematic for Greggs, in our view, is the wider impact of coronavirus upon consumer behaviour and markets, notably the slowing down of its development plans and the disruption to trade, particularly in travel hubs and business centres that working from home brings to the British food system,” analysts commented.
“We would expect the shift in footfall from major urban centres to the suburbs to provide some compensating trade for Greggs’ outlets located in the suburbs.”
“However, we also continue to believe that 2020 will be a financial wipe-out year for the group, which leads us to look at 2021 and thereafter as to the prevailing value of the business.”
Shares dipped 1% to 1,423p on Friday in early trades.