Greggs bucks High St gloom as profits jump

GREGGS has raised its profits forecast for the fourth time this year, sending its valuation soaring to over £2bn.

More customers are visiting the bakery chain’s stores, and a total sales increase of 12.4pc in the past six weeks compared to the same period last year pushed shares up 16.5pc, or 293p, to 2064p.

The Newcastle-based company’s £2.1bn market capitalisation is bigger than outsourcer Serco’s and self-storage company Big Yellow Group.

Greggs had previously been expecting full-year profits to be around £107m on revenues of £1.16bn, according to its house broker. But the business said it anticipates profits ‘to be higher than our previous expectations’.

Launched 80 years ago by John Gregg, who sold fresh eggs and yeast, the group has transformed itself into a leading food-on-the-go retailer with 2,000 stores and 23,000 UK staff.

earlier this year growth was boosted by the success of its vegan sausage roll, and more vegan lines are expected early next year.

But bosses warned they would temper its store openings this year and that Brexit was leading to an increase in labour and input costs.

Neil Wilson, analyst at Markets.com, said: ‘Greggs has the magic touch. We’re now talking about a £2bn sausage roll seller.’

Last month the company’s chief executive Roger Whiteside said the company had stockpiled selected ingredients including bacon in case of a No Deal Brexit.

The chain announced its Christmas menu this week which includes a pigs-inblankets baguette and turkey and stuffing soup.

Two years ago the company was accused of sacrilege after an advert for its Advent calendar showed an enormous sausage roll in a crib in place of the baby Jesus surrounded by the Three Wise Men.

Christians said the mock Nativity scene was ‘an affront to millions’ and no other religion would be treated in that way. Greggs apologised.

Yesterday the firm was mocked for encouraging its customers to watch their weight by opting for lowercalorie ringed doughnuts.

Good Morning Britain host Piers Morgan said: ‘You’ll still get fat.’