Sausage roll purveyor Greggs is due to release third-quarter results on Tuesday October 4, with analysts eager to see how profits have squared up against cost inflation.
Greggs has been pursuing strategic expansion plans by targeting high-footfall locations like airports and train stations, so the earnings call will be a test of the company’s progress in the face of rising costs.
Charlie Williams, equity research assistant at Hargreaves Lansdown, said: “On-the-go food retailer, Greggs, has grown impressively since coming out of the pandemic.
"Like-for-like sales for the first half of the year were 12.3% ahead of pre-pandemic levels, but large city locations have continued to lag. While their strong presence in towns and suburbs has helped offset this, it would be good to see transport hub locations recover alongside the industry."
While management has suggested that price hikes have yet to take a bite out of volumes, “profits haven’t seen the same sort of growth,” according to Williams, who added: “The group estimates cost inflation to be running at 9% for the full year, and next week should shed some light on how this may impact the outlook going forward.”
The company’s full-year guidance has remained unchanged since a profit warning in March, so investors will hope no further tweaks are announced.