|Bid||2,018.00 x 0|
|Ask||1,960.00 x 0|
|Day's range||1,986.00 - 2,034.00|
|52-week range||1,003.00 - 2,496.00|
|Beta (3Y monthly)||0.23|
|PE ratio (TTM)||27.18|
|Earnings date||31 Jul 2017 - 4 Aug 2017|
|Forward dividend & yield||0.37 (1.84%)|
|1y target est||1,340.00|
Today we'll look at Greggs plc (LON:GRG) and reflect on its potential as an investment. In particular, we'll consider...
Greggs plc (LON:GRG) has the business to outdo the failing British high street, making it a key buy for value investors, says Tom Rodgers.
The success of the Greggs vegan sausage roll helped drive up profits to £40.6m in the first half of 2019. Photograph: Christopher Furlong/Getty ImagesGreggs is to open a number of shops after 9pm offering evening meal deals as it tries to grab a slice of the takeaway dinner market following its success in attracting breakfast diners.The initiative was revealed as the UK’s largest bakery chain handed shareholders a £35m special dividend after profits jumped more than 50% to £40.6m in the six months to 29 June, partly thanks to the success of the vegan sausage roll launched in January.Sales at established stores leapt 10.5% as the chief executive, Roger Whiteside, said the vegan pastry had helped attract new shoppers and change the perception of Greggs from “an old-fashioned bakery from the north” to a “modern food-on-the-go brand”.Whiteside said Greggs had now overtaken Starbucks to become the UK’s third largest takeaway coffee seller, behind Costa and McDonald’s, as total sales for the chain rose 14.7% to £546m.One in eight new customers bought a vegan sausage roll, which has overtaken some doughnuts and other pastries to become one of the chain’s bestsellers. Traditional sausage rolls remain the number one item, however.More vegan products are in development, although Greggs is not revealing details yet. After a small test, Greggs is also planning to open a number of sites across the UK until 9pm offering evening meal deals and hot food. Most stores currently close between 6pm and 7pm.“We want to see whether or not people will choose Greggs instead of another fast-food outlet, a takeaway or going home and heating up lasagne in the microwave,” Whiteside said.“We want to try and do the same for evening as we did in breakfast. We weren’t in breakfast a few years ago and now we’re number two [in the takeaway market].”Shares in Greggs slid more than 5% to £22.56 as the company said it was not upgrading profit guidance for the year, after a series of upgrades. Instead the company is paying out the special dividend of 35p a share on top of an 11.9p interim dividend, which is up 11.2% on a year ago.The company is also upping investment, bringing forward plans for robot-led automation at its pastry manufacturing site in Balliol Park in Newcastle upon Tyne as well as developing new ideas including evening meals, online ordering for collection and home delivery.Sign up to the daily Business Today email or follow Guardian Business on Twitter at @BusinessDesk“We want to invest in the exceptional year to provide the basis for long-term growth in the future,” Whiteside said.But he warned that the current pace of sales growth, partly helped by weather conditions, was unlikely to continue. “You shouldn’t expect more of the same of this type of number when we next update,” he said.He insisted the company had not reached “peak Greggs” and still had several avenues for growth.While other high-street operators are closing stores, Greggs is on track to open its 2,000th outlet in the next few weeks as part of plans for 100 new stores this year. Greggs has said it sees potential for 2,500 outlets in the UK.
(Bloomberg) -- Have we reached the high point for Greggs shares? Peel Hunt analysts think so, as the buzz surrounding vegan sausage rolls starts to fade.Although sales remain strong, the rate of like-for-like growth will start to normalize in the second half, the company said Tuesday, causing the shares to lose a little of their recent strong momentum.“Right now we are experiencing ‘peak Greggs’,” Peel Hunt analysts Jonathan Pritchard and John Stevenson wrote in a note. “Greggs’ growth this year will be stellar, but the market knows that, and with no change to forecasts today given the concerns on the outlook, it will be hard yards for the shares.”Greggs shares fell as much as 7.3% on Tuesday, the most since May 2018. The stock has been unstoppable this year, gaining 88% through Monday as hype surrounding the introduction of a vegan sausage roll helped its market value surge above 2 billion pounds ($2.4 billion).“It’s definitely not peak Greggs,” Roger Whiteside, Chief Executive Officer of Greggs, said on a call with journalists. “New customers are being attracted by publicity surrounding the vegan sausage roll and the fact that we’ve been transforming our shops and transforming our offer over the last five years. But we keep adding a hundred new shops, so it can’t be peak Greggs, can it?”Peel Hunt is the lone bear on the shares, downgrading its rating to reduce earlier this month and recommending that investors take profit. Its price target of 2,000 pence suggests about 12% downside from the last price of 2,272 pence.Analysts at Barclays also said the shares may struggle to maintain their gains in the short term. “Greggs’ valuation is elevated vs long-term averages and looks vulnerable to a de-rating,” analyst Richard Taylor wrote in a note. Still, in the long term “the fact that the company is investing rather than focusing on short-term profit is a factor that should help sustain a premium rating.”(Updates shares, adds Barclays comment in last paragraph.)\--With assistance from Timothy Abington.To contact the reporter on this story: Lisa Pham in London at email@example.comTo contact the editors responsible for this story: Beth Mellor at firstname.lastname@example.org, Paul JarvisFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Shares in this FTSE 250 (LON:FTSEINDEX:MCX) hot stock fall despite a great set of results. Paul Summers takes a closer look.
A daily overview of the top business, market, and economic stories to watch in the UK, Europe, and abroad.
Vegan sausage rolls lured more people into the bakery stores of Britain's Greggs , helping drive a 58% first half profit rise as they also snapped up coffees, sandwiches and cakes. Greggs launched its vegan roll, with a filling made with protein-based Quorn, after a customer campaign and its arrival was enthusiastically greeted on social media and the bakery and food-to-go retailer initially raced to meet demand. Chief Executive Roger Whiteside said on Tuesday Greggs was having an "exceptional year", with sales up nearly 15% in total.
Greggs, the British baker and food-on-the-go retailer, posted a 58% rise in first-half profit on Tuesday, driven by a boost to sales from the popularity of its vegan sausage rolls. The firm, which trades from around 2,000 outlets in the UK, reported underlying pretax profit of 40.6 million pounds ($49 million) in the six months to 29 June, up from 25.7 million pounds in the same period last year.
Royston Wild discusses a handful of income shares -- including this Footsie favourite -- which could make you a million. Can you afford not to read this?
In my view, index investing is set to face serious challenges in the next decade. That's why I'm targeting equities like Greggs and Softcat this summer.
Harvey Jones reckons these FTSE 250 (INDEXFTSE: MCX) stocks could continue to race ahead of the rest of the market.
* STOXX 600 up 0.7%, DAX outperforms up 1% * Deutsche Bank rallies after passing U.S. banking stress test * Merlin Entertainment jumps 14% after Blackstone swoop * STOXX 600 had strong June, on track for 3.8% monthly gain June 28 - Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Josephine Mason. Overall it's been a spectacular first half with global stocks sealing their strongest start to the year since 1997. Investors are on tenterhooks ahead of this weekend's G20 meeting between Trump and Xi, which could prove explosive or underwhelming.
* STOXX 600 up 0.4%, DAX outperforms up 0.5% * Deutsche Bank rallies after passing U.S. banking stress test * Merlin Entertainment jumps 14% after Blackstone swoop * STOXX 600 had strong June, on track for 3.8% monthly gain June 28 - Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Josephine Mason. Reach her on Messenger to share your thoughts on market moves: email@example.com "LEAST BAD" EARNINGS EXPECTATIONS POINT TO HOPE FOR EUROPE (1302 GMT) A result of a long period of downgrades and depressed sentiment for Europe's economy and companies, with the rest of the world now finally catching up? Or a sign European stocks could perform better in the upcoming earnings season?
* STOXX 600 up 0.3%, DAX outperforms up 0.5% * Deutsche Bank rallies after passing U.S. banking stress test * Merlin Entertainment jumps 14% after Blackstone swoop * STOXX 600 had strong June, on track for 3.8% monthly gain June 28 - Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Josephine Mason. Global markets have gained 14% with the U.S. up 17%, Europe up 13%, Asia Pacific ex-Japan up 11% and Japan up 6%. In Europe, food & beverage and technology are the best-performing sectors so far this year, while telecoms, generally a defensive sector, is the only faller.
The most recent earnings update Greggs plc's (LON:GRG) released in December 2018 indicated that the business...
By Shashwat Awasthi and Yadarisa Shabong (Reuters) - British shares surged on Tuesday as investors grew optimistic about a U.S.-China trade deal after U.S. President Donald Trump vowed it would happen ...