The Greggs plc (LON: GRG) share price dropped 3.31% after releasing its Q3 trading update for the 13 weeks to 30 September 2023. The company revealed that its total sales were up 20.8% during the review period, demonstrating its strong trading performance in Q3.
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The like-for-like sales in the company-managed shops rose 14.2% compared to last year. The company attributed its improved LFL sales to more frequent customer visits, the increasing popularity of its evening trading, and digital channels and customer loyalty programmes offered via the Greggs app.
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The British bakery chain noted that evening trading, which accounts for sales made past 4 p.m., accounted for 8.8% of the sales made by company-managed shops in Q3 2023 compared to 8.3% in H1 2023. The Greggs app continues to gain popularity among customers, as 13.1% of company-managed shop transactions were scanned in Q3 2023 (H1 2023: 10.6%).
Market insight data released by Cricana in August 2023 showed that Greggs continues to grow its share of the food-to-go market and remains a leader in value-for-money and customer satisfaction ratings. The company also noted the release of its autumn menu, which features the Veg Bhaji Baguette and Spicy Chicken served hot.
Greeggs’ new menu also has vegetarian options such as the Veg Bhaji Flatbread, the Cheese and Honey Mustard Toastie, and the Mozzarella and Cheddar Bites, which offer customers a new hot-to-go snacking option.
The bakery chain has opened a net of 82 new shops since the year began, having opened 144 and closed 62 shops. Given its robust pipeline, the company expects to open a record number of shops this year, between 135 and 145 net shop openings ahead of 2024.
The company continues to invest in its supply chain by opening new stores to give customers greater access to Greggs and better serve its existing clients in areas where it was already operating. It decided to relocate the shop location within the same catchment area.
The drop in Greggs’ share price was unwarranted, given the upbeat nature of the company’s Q3 update. Whether the shares shall reverse course soon and head higher remains to be seen.
Greggs share price.
The Greggs share price fell 3.31% to trade at 2396.0p, from Monday’s closing price of 2478.0p.
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