Greggs (LON:GRG) Announces Quarterly Earnings Results

Greggs (LON:GRG) issued its quarterly earnings results on Wednesday. The company reported GBX 55.10 EPS for the quarter, Digital Look Earnings reports. Greggs had a return on equity of 20.47% and a net margin of 5.68%.

Here are the key takeaways from Greggs’ conference call:

• First-half profit and cash flow improved: Total sales rose 7.2%, company-managed like-for-like sales increased 2.1%, and profit before tax climbed 19.7% to £76 million. Operating cash flow grew 18.3%, while the company maintained its 19p interim dividend.
• Greggs said its value-led brand continues to gain market share, with share of food-to-go visits rising 0.3 percentage points to 8.7% despite an overall market volume decline. Menu innovation, including iced drinks, matcha, salads and the Chicken Roll, is intended to support demand across different weather conditions and consumer trends.
• Expansion remains profitable and disciplined: New shops are achieving or exceeding the targeted 25% mature cash return on investment, with limited evidence of cannibalization. The company expects 100–110 net new shops in 2026 and sees potential for at least 3,500 U.K. locations over the longer term, supported by smaller Bite Size and Greggs Express formats.
• Management expects full-year profit to be broadly flat year over year despite the strong first half, primarily because Derby operating costs will increase by about £10 million in the second half. Derby’s cost annualization and the launch of Kettering are also expected to constrain profit progress in 2027 before supply-chain leverage improves from 2028.
• Capital expenditure guidance was reduced to £180 million from £200 million as major supply-chain projects near completion and contingency is released. The resulting recovery in free cash generation could create scope for additional shareholder returns once cash reaches the company’s target level, potentially through special dividends or share buybacks.

Greggs Price Performance

Shares of GRG stock traded up GBX 281 on Wednesday, reaching GBX 1,971. The company had a trading volume of 5,164,707 shares, compared to its average volume of 4,247,590. The business’s 50-day moving average is GBX 1,635.24 and its 200 day moving average is GBX 1,618.12. Greggs has a one year low of GBX 1,407.20 and a one year high of GBX 1,977. The company has a quick ratio of 0.88, a current ratio of 0.56 and a debt-to-equity ratio of 75.94. The stock has a market capitalization of £2.01 billion, a PE ratio of 16.52, a price-to-earnings-growth ratio of 3.39 and a beta of 1.15.

Wall Street Analysts Forecast Growth

GRG has been the subject of several research reports. Shore Capital Group reissued a “hold” rating on shares of Greggs in a report on Tuesday, May 12th. Deutsche Bank Aktiengesellschaft restated a “sell” rating and issued a GBX 1,330 price target on shares of Greggs in a research note on Wednesday, May 13th. UBS Group reiterated a “buy” rating and issued a GBX 2,200 price objective on shares of Greggs in a research note on Monday, May 11th. Berenberg Bank reissued a “buy” rating and issued a GBX 2,090 price objective on shares of Greggs in a report on Thursday, May 14th. Finally, Jefferies Financial Group restated a “hold” rating and set a GBX 1,610 target price on shares of Greggs in a research report on Wednesday. Four analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock presently has an average rating of “Hold” and a consensus price target of GBX 1,824.29.

Insiders Place Their Bets

In related news, insider Richard Smothers bought 1,615 shares of the business’s stock in a transaction on Tuesday, May 19th. The shares were purchased at an average price of GBX 17 per share, for a total transaction of £274.55. 0.62% of the stock is owned by corporate insiders.

About Greggs

Greggs is a leading UK food-on-the-go retailer with more than 2,700 shops nationwide and approximately 33,000 employees across the business.

As a food-on-the-go retailer, Greggs specialises in daily fresh shop-made sandwiches, and savouries baked fresh in the shop ovens throughout the day. These are further complemented by popular products and ranges including freshly ground coffee, breakfast, confectionery and evening menu items. Greggs also offers a healthier options range which includes a selection of gluten-free, vegan-friendly and lower calorie products.