Greggs (LON:GRG) Releases Quarterly Earnings Results

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

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 Trading Up 0.9%

Shares of GRG opened at GBX 1,996.49 on Thursday. The firm’s 50-day moving average price is GBX 1,641.42 and its 200-day moving average price is GBX 1,620.23. The firm has a market capitalization of £2.04 billion, a price-to-earnings ratio of 16.74, a PEG ratio of 3.39 and a beta of 1.15. The company has a current ratio of 0.56, a quick ratio of 0.88 and a debt-to-equity ratio of 75.94. Greggs has a 1-year low of GBX 1,407.20 and a 1-year high of GBX 2,046.

Wall Street Analysts Forecast Growth

A number of research analysts recently issued reports on GRG shares. Berenberg Bank boosted their price target on Greggs from GBX 2,090 to GBX 2,200 and gave the company a “buy” rating in a report on Thursday. UBS Group reiterated a “buy” rating and issued a GBX 2,200 price objective on shares of Greggs in a report on Monday, May 11th. Jefferies Financial Group reiterated a “hold” rating and issued a GBX 1,610 price objective on shares of Greggs in a research report on Wednesday. Shore Capital Group reissued a “hold” rating on shares of Greggs in a research note on Tuesday, May 12th. Finally, Deutsche Bank Aktiengesellschaft reissued a “sell” rating and set a GBX 1,330 target price on shares of Greggs in a research note on Wednesday, May 13th. Four investment analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, Greggs currently has an average rating of “Hold” and a consensus target price of GBX 1,840.

Insider Activity

In related news, insider Richard Smothers purchased 1,615 shares of the firm’s stock in a transaction that occurred on Tuesday, May 19th. The stock was bought at an average cost of GBX 17 per share, with a total value 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.