The Motley Fool

Greggs Plc Approaches All-Time High As Turnaround Takes Shape

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

The shares of Greggs (LSE: GRG) rallied by 4% to 536p this morning after the bakery chain announced a significant reversal in like-for-like sales.

The food-to-go baker’s total revenues grew by 4% compared to last year, as renovated shops rejuvenated the company’s like-for-like sales. Greggs completed 66 refurbishments this quarter, as part of a turnaround strategy enacted by CEO Roger Whiteside, who took over last year.

5 Stocks For Trying To Build Wealth After 50

Markets around the world are reeling from the coronavirus pandemic… and with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.

But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be a daunting prospect during such unprecedented times.

Fortunately, The Motley Fool UK analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global upheaval…

We’re sharing the names in a special FREE investing report that you can download today. And if you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio.

Click here to claim your free copy now!

greggs_shopLonger trading hours, refreshed product lines and low cost inflation all combined to boost results. But Greggs was quick to remind investors that these results were delivered in comparison to last year’s exceptionally weak trading, when heavy snow impacted high-street footfall.

While the company doesn’t expect the same kind of comparable growth next quarter, there were clear signs that Greggs’ new strategy is taking shape, and that rumours of the company’s demise last year were greatly exaggerated.

Looking ahead, the company added:

“The second half is likely to be more challenging as we come up against relatively stronger sales comparables and likely cost inflation.  Overall we expect to deliver satisfactory financial results for the year and good further strategic progress.”

With a market cap of £540m, Greggs’ shares trade at 15 times expected earnings, and offer a prospective dividend yield of 3.5%.

Of course, whether that valuation, today’s statement and the future prospects for the bakery industry all combine to make shares of Greggs a ‘buy’ remains your decision.

Is this little-known company the next ‘Monster’ IPO?

Right now, this ‘screaming BUY’ stock is trading at a steep discount from its IPO price, but it looks like the sky is the limit in the years ahead.

Because this North American company is the clear leader in its field which is estimated to be worth US$261 BILLION by 2025.

The Motley Fool UK analyst team has just published a comprehensive report that shows you exactly why we believe it has so much upside potential.

But I warn you, you’ll need to act quickly, given how fast this ‘Monster IPO’ is already moving.

Click here to see how you can get a copy of this report for yourself today

Mark owns shares in Greggs.

Our 6 'Best Buys Now' Shares

Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.

So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we're offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our 'no quibbles' 30-day subscription fee refund guarantee.

Simply click below to discover how you can take advantage of this.