31st of december 16 Turnover �894,195,000 Gross profit of �565,539,000 - Cost of sales �328,656,000 Wages and Salaries �336,886,000 - Profit after tax �58,000,000.........this shows how high thier costs are in relation to profit. They have recently installed a system called Qudos - This system monitors historical ordering data, to predict future stock ordering requirements, and also to tells the shop how many hours to use and allocate to staff. This is proof that greggs are trying to innovate to reduce costs, and if it works accross the whole business it could create a huge saving and increase the net profit on it's own. The fact is Greggs have been expanding pretty rapidly over the last few years, but havent seen a great increase in profit due to this, certainly not as much as you would hope, therefore in my opinion, cutting costs to retain some of that huge Gross profit, seems like a great strategy to help overcome dificult trading conditions. We might be pleasantly surpised how well Greggs actually perform over the next 12- 18 months, especially with the this latest initiative, and if footfall picks up as I'm sure it will with the ever changing menu, then I really don't see this hanging down around these levels for very long.
All of the share save options have been allocated for the next year. And they mature on june 1st at which point the subscriber can A. Take thier money back and get no shares....B. Allocate the money they have saved to buy their share allocation at a 20% discount to the share price offered at the time (3 years before)....at which point they can hold the shares or sell them immediately. Once june 1st is over with I would expect a rise. Especially considering the fact that summer will be well under way. Footfall should increase with a good run of weather. I think if you see a 9 then it's well worth a top up. I would love to see the relaunch of an old favourite. And a bit of refinement to the current menu. Some of the newer products aren't very nice and it's starting to put people off a little I feel. If it ain't broke don't fix it!
The Bank of England cited the slowdown in growth was almost entirely due to the bad weather and expects a rebound in growth. I feel this share will mirror that sentiment. As we approach the 52 week low it's looking great for buyers in my opinion in the 12-18 month range certainly.
I think this is a complete over reaction by the market. Greggs is in a strong position. The weather for this year has been terrible and some of the new ranges are a tad ambitious, but there's one thing Greggs have been good at since I first started buying back at �4.65, and that's adapting to the market and diversifying. I personally see it as a matter of months before we get back up to the �12.00 range. The performance of last year being repeated as they have indicated today, should help the price recover as this is what drove the price to �12.00+ in the first place. A minor blip and a great chance to get in to greggs shares if you haven't already in my opinion. I'm sure the market will turn bullish if the results are slightly better than predicted again.
Good job I'm in at £4.65 then! The new shops feature seating areas, with a focus on food on the go. The breakfasts are getting good reviews and more shops open every year. The yearly profit share employee bonus was huge last time around in comparison to previous years. And Greggs show no sign of slowing. They have impeccable standards with a very tough auditing and ranking system. The company is moving with the times and away from its more traditional roots, and this is ensuring year on year growth, with a good solid profit. This share is a solid long term prospect in my opinion.
"Can i ask what happened to your heaters on your food"...........they don't charge vat its a loophole, they dont keep the food warm so they dont have to charge vat, hence sometimes you get luke warm pasties, but you can always ask them for a hot one, you might have to wait a few minutes though! They have just launched a new sandwich making procedure, much better, filling wise and packaging wise. Aslong as the shares stay above 4.65 im a happy chappy!
Are trying to help this guy reach his target, truly inpsiring story well worth a read and a share or a retweet! https://www.justgiving.com/Stephen-Sutton-TCT
Are barely worth opening, and don't make profit, they should shut them down and save costs, , they are training up people from moto to work in greggs franchise shops, in petrol stations etc, and they have food in Iceland obviously. Some of the cakes they make are horrendous lately, the sandwiches are nice and some of the pies and pasties, they need to go back to basics, whats wrong with good traditional food, nice homely recipes, i think they are trying to be too clever these days and losing people. They should sack the ideas people, and employ food tasters! some of the Halloween cakes last year had chilli in them and were almost inedible, they had to pull the range they were so bad. The biggest and worst thing they ever did was to change the cheese in the cheese pasties to some tasteless gloop! And what amazes me is you cant buy bread in every shop, its a bakers for crying out loud lol. If they go back to basics, get rid of the dead weight shops, and tighten up the management of absences, as well as give the shops more hours instead of pushing the staff to the edge, and employ a better waste management/availability system, then im sure we will see a sustained recovery!