Proactive Investors - Sausage roll specialists Greggs PLC (LON:GRG) is due to release its fourth quarter trading update on Thursday 5 December, with all eyes on cost inflation and the outlook for the new year.
The bakery chain kept its full-year pre-tax profit guidance of £145.6mln in its third-quarter report, despite a slowdown in sales and caution over “considerable uncertainty”.
Maintaining guidance was largely down to the FTSE 250-listed group expecting cost inflation to remain unchanged at around 9% throughout the final three months of the year.
However, most of Greggs’ revenue growth is likely to be “eaten up by higher costs”, said analyst Matt Britzman at Hargreaves Lansdown (LON:HRGV).
Looking ahead, analysts will be keeping a keen eye out for any further commentary on the cost inflation in 2023.
Additionally, Greggs will be pushing ahead with plans to bolster its estate, with more news on openings in the fourth quarter update expected.
For the full year, the group’s been targeting 150 net openings, of which around 40% are expected to be with franchise partners.
“That’s all part of Greggs’ plan to increase the number of franchise stores, something we’re supportive of as it means day-to-day running costs can be passed on to franchisees,” said Britzman.