I would say worth a punt at these prices. Still a danger of stop starting and still uncertainty about the re opening of the Gaydon Site. But if you don't mind taking a risk, I would think with the backing of the brand name itself, it's not a bad option.
The share price won't drop dramatically because of that....the way the employee options work is that you close one account every year on June the 1st, then you take out a new option at the same time for the year after, so, in reality, there is no major difference.
I have followed Greggs for years and they have always performed well. They are expanding every year and currently extending hours to maximize potential earnings.....they are now opening drive-thrus, In fact the first one is near me haha.
Also, the vegan options will continue to expand and unlock further sales. The future is very rosy for Greggs, as they continue thier domination of the high street!
Hehe, I have made a killing on Greggs over the years. Bought my first lot at £46.50 then they consolidated to £4.65 and it climbed back to £10.87 for a huge profit. messed up one trade sold too early a few months back, but I have a chunk at £8.65 and they are soaring high again. Dream share!
I wouldn't at all be surprised to see £11.50 - £11.83 but I couldn't risk losing my gains so I have sold the lot. I'm happy considering currently market volatility. Also I run a business and the injection of cash will help me to grow at a much faster rate! I'll be back. Good luck!
The run in up to Christmas is always busier than at any other point in the year. The risk of cold and snow is higher, but certainly, up to the end of January, I would expect a very strong performance, especially taking into consideration the efficiency savings they made to catch up last time. Also the lack of a one-off charge will help again. I'm confident we will see £11.50 sparing any major disaster. It all depends upon the 9th of October trading update, if it's positive I expect a decent correction, negative will push us down into the late 9's I would have thought!
I think realistically, in the next 2-3 months we should look from £11.30-£11.89 at at P/E of 19-20 Macdonalds is currently at around 21 - the average market pe is 15-25 so we have room for movement I'd say, hopefully, combine that with a strong second half to push us above 12 again. Feeling more positive these days!
To claw back a deficit in such a short time, Greggs must have been running much more efficiently than previously. We could assume that no company would ever go back to how they did it before, when they have a new improved more efficient way of working.
With that in mind it's entirely possible that the next 6 months, assuming there are no major weather events, this momentum that has seen them recover, will carry on and perhaps produce an improved performance on normal trading conditions. Certainly something to think about.
I initially thought they had been saved by the lower exceptional charges, but this would have already been accounted for at the profit warning stage, so in my mind, Greggs have improved baseline efficiency to claw it back and this will also have an impact going forward in normal conditions.
I already know about several initiatives within Greggs designed to improve efficiencies, and know that the chain of command is very strong, and committed to meeting and discussing continuous improvement on a regular basis. I have a good feeling about this share longer term, and love that they keep pushing expansion and spending vast sums of money on operational improvements, it really does set them apart and show ambition.
External factors can change at the drop of a hat and conditions are tough on the high street, but I have confidence in their past performance and their willingness to adapt!
Looks like they clawed it back! I think the reduction in the exceptional charge helped matters. I really thought a drop was more likely today. But in true greggs form, they have cut costs and eeked out a performance. The market will take great confidence in the resilience shown and the excellent 10 year performance. Onwards we go to 2000 stores!
In reading reports about a month on month downturn in sales figures for the high street. Surpsingly caused by the hot spell of weather. Im feeling as though we could be in for some bad news but we have hopefully priced it in already. If it's bad id expect another teporary drop under £9.00 but I already feel as though the price is way too low, despite a drop in sales. If it's good news. I would expect a correct above £11.00. Or certainly mid tens. Im not optimistic about that though.
Well I'm starting to think, with the results coming up within 2 weeks and with the price still falling that someone knows something we don't..... I get the feeling that, the drop in revenue could still materialise, also the hot weather may put people off just as much as increase footfall hindering a recovery. I heard that the new salad and pasta menu hasn't been all that popular, but I'm still seeing news about the expansion in Newcastle, and about he opening of over 100 new stores to take the total to around 2000 stores. It's a hard one to call. Personally I think it's starting to look very interesting again and would give very serious consideration to anything sub £9.00. What ever the drop in revenue, surely it does't warrant a 35% reduction in share price. Will profit drop so much?
From today..........https://www.chroniclelive.co.uk/news/north-east-news/greggs-given-green-light-expansion-14891727
"The expansion plans, which the firm described as an “absolutely fundamental piece of the strategic jigsaw for Greggs” were unanimously approved by councillors on North Tyneside Council’s planning committee.
And the expansion is part of Greggs’ ‘Project Blueprint’ which will see the firm invest £100m and expand from 1,850 stores across the UK to 2,000."
I think the results will be much more positive than everyone thinks, helped by the move to healthier food on the go options, salads pastas etc etc combined with a tremendous period of good weather and a world cup hat has gripped us all. 20 days to find out!
I'm expecting a recovery. Some exceptional spells of weather to make up for the terrible weather earlier in the year should balance it out and hopefully pull greggs back on track. Plenty of new products coming out. Footfall increasing.....we shall soon find out. I feel the price is a little too low for the consistent performance displayed over the years. This has been a great share and i see recent notices as a temporary blip imo
Quite low trading volumes of late. Sure things will hot up in July! Online retail figures are soaring now which could spell disaster for the high street if it carries on. Maybe greggs will be the only reason to go into town in the end!
That article is 4 years old. They obviously didn't bother in the end. Greggs obviously got wind of it and created their own food on the go range, maybe they are doing to attract Tesco? Also they recently announced the closure of their Tesco direct service, maybe this is the start of a reshuffle/rethink. I highly doubt Tesco will buy Greggs, but I suppose it's not beyond the realms of possibility. Sandra Turner - a non executive director of Greggs was a commercial director for Tesco Ireland for 22 years, so a small link from 2009 onwards. Greggs already saturate the high street, despite the high street's well documented decline, so maybe in order to avoid eventual disaster, it could be a good move to migrate into supermarkets up and down the country as well as airports and service stations etc......
A week or so ago. Sky News reported the biggest sales surge in 18 months dated 24th May. We are set for a great period. May is hottest on record. With June set to continue this run of good weather. Maybe this is the boost the high street was looking for? Time will tell!
I've been in for 5 or so years now, plan on holding onto them. People have always gotta eat! I like the fact that every town has a place for a greggs, adn the fact that the moto franchises are growing in number. Whether you need a bacon butty on your way to work and a coffee, or a quick bite to eat, or an indulgent cake to take home, or a dinner platter for the office, Greggs have it covered! Wide appeal, and financially strong. Jus need to keep those costs down, and tighten up the 5's like mcdonalds and they have cracked it!