Will journalists be wheeling out the ever-popular 'Greggs on a roll' headline on Monday or will the story be something less savoury?
The chances are it could be the latter for Greggs PLC (LSE:GRG), which warned in its full-year results statement back in March that surging levels of cost inflation would crimp profits in the coming year.
In view of the fall-out from Russia’s invasion of Ukraine, analyst Clive Black at Shore Capital said he felt Greggs was bang in the middle of the “maelstrom of Ukraine-related cost pressure” of elevated gas, oil and wheat costs.
This, he said, “could be particularly challenging for a company like Greggs, which is very value-orientated and, as such, has many customers that may now start to really feel the pinch”.
Focus in the trading update could well be on profit margins.
With more outlets in the UK than McDonald’s, Greggs possibly has the ubiquity to push through price increases and the purchasing power to keep suppliers in line.
There may be more shops but a lack of like-for-like growth is becoming a concern, according to analysts at Third Bridge.
“With the wow-factor of its vegan offerings now a distant memory, Greggs needs to provide more innovative and broad meal and drink choices.”
Having hit an all-time high above £34 in December, the company's shares have fallen 35% in the year to date.