Greggs outperforms once again

Tuesday, 27th November 2018 09:22 - by Rajan Dhall

That market is expecting Greggs shares to rip higher this morning after the Co.'s like-for-like sales rose 4.5% for the eight weeks to 24 November 2018. Here are some of the highlights from the report:

·    Total sales up 9.0% for the eight weeks to 24 November 2018

·    Company-managed shop like-for-like sales up 4.5% for the eight weeks to 24 November 2018

·    Like-for-like performance ahead of expectations and good cost control

·    Now anticipate 2018 full year profit before tax (excluding exceptional charges) to be at least £86 million

·    Board now anticipate that full year underlying profit before tax (excluding exceptional charges) will be at least £86 million.

Looking at the chart, there are a few resistance levels over the horizon. First of all the 1300p psychological level has been used on a number of occasions as support and resistance and we could see some stickiness there. If that gets broken then the high on the chart of 1399p is the next target. Longer term we could see moves to new highs but I anticipate this could take some time. Moving forward the Gov. has indicated they are willing to do more to help the high st. We are yet to hear detailed plans other than an online tax that may reduce business rates. Once we get more details, we could see even more improvements here as any more traffic could help boost sales.

The Writer's views are their own, not a representation of London South East's. No advice is inferred or given. If you require financial advice, please seek an Independent Financial Adviser.