Greggs PLC (LON:GRG) said the sales recovery after the lifting of restrictions is stronger than anticipated.
The baker said that, if it were to continue, it would have a “materially positive” impact on the expected financial result for the year.
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The FTSE 250 group had forecast sales to be hit by increased competition as cafes and restaurants were allowed to reopen and compete with its take-out offer.
However, in recent weeks the impact of pent-up demand for retail has reduced but like-for-like sales growth in company-managed shops has remained solid, up 1-3% from the same period in 2019.
The firm said in May that full-year profits could be much higher than expectations and reach 2019 levels if restrictions continued to ease in line with the government’s plans.
"There is clearly upside in forecasts if things stay as they are, but we will get chapter and verse on the numbers in early August so we will wait until then to change forecasts," analysts at Peel Hunt said.
Shares rose 1% to 2,586p on Monday morning.
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