By Paul Sandle
LONDON (Reuters) - British baker Greggs (L:GRG) said it expected to beat full-year market expectations thanks to strong demand for its hot snacks and coffee over the Christmas season, driving its share to an all-time high.
The group, which also sells sausage rolls and sandwiches, saw sales accelerate towards the end of the year, with own shop like-for-like sales growth in the fourth quarter averaging 6.0 percent and rising to 8.2 percent for the five weeks to Jan 3.
Chief Executive Roger Whiteside said: "We have experienced a very strong level of trade through the Christmas and New Year period," he said on Tuesday.
"Customers have clearly responded to the improvements in our product offer and service, designed to meet the needs of the food-on-the-go consumer, during this busy period," he added.
Consumers were seeing the cost of many basic items coming down, giving them more cash for discretionary spending in stores like Greggs, Whiteside told reporters.
"As we start the new year, the outlook looks favourable."
Shares in Greggs were trading up 6.4 percent at 797.5 pence by 0840 GMT, valuing the group at 800 million pounds, having earlier touched a record high of 804.5p.
Analysts at UBS said Christmas finished a "fantastic year" for Greggs, and it upped its underlying pretax profit forecast for 2014 by 3.5 percent to 58 million pounds.
Whiteside said that coffee was the star performer, with sales peaking at more than a million pounds in the week before Christmas. The company sells its coffee at lower prices than many of the main high street chains.
A new sandwich range also sold well, he said, and an upgrade in the quality of its cakes and savouries was well received.