Greggs’ Share Price Rose 3.50% on Its Upbeat FY 2023 Revenues

The Greggs plc (LON: GRG) share price rose 3.50% after releasing its preliminary results for the 52 weeks ended 30 December 2023. The company’s overall revenue increased by 19.6% compared to 2022, with same-store sales in company-operated locations experiencing a 13.7% rise over the previous year.

After adjusting for extraordinary items, the profit before tax saw a 13.1% increase to £167.7 million from £148.3 million in 2022; adjusted diluted earnings per share also rose by 5.4% to 123.8p. 

A substantial cash reserve of £195.3 million enables further growth investments and the distribution of an additional special dividend of 40.0p per share to shareholders.

A proposed final dividend of 46.0p per share has been suggested, leading to a total ordinary dividend of 62.0p per share for the year, a 5.1% increase from 2022, matching the adjusted diluted earnings per share.

According to YouGov's Brand Index, Greggs stands out as the top brand in the UK for food-on-the-go. Its market share has reached new heights, capturing 8.2% of food-to-go visits, an increase from last year's 7.7%. Dominating the food-to-go breakfast sector with a 19.6% share, Greggs now leads the market.

The year 2023 saw the opening of a record 220 new Greggs outlets and the closure of 75, netting 145 new openings and expanding the network to 2,473 locations as of December 30, 2023.

Additionally, 42 shops were relocated, and 122 received refurbishments. Growth was further fueled by expanding partnerships with key retailers like Primark, Tesco, and the latest partner, Sainsbury's, and strengthening its presence in London, including new locations in Canary Wharf and Waterloo railway stations and Gatwick Airport.

For 2024, Greggs aims for 140 to 160 net new openings, aiming to exceed 3,000 shops across the UK. Over 1,200 outlets now serve customers seeking food on the go until 7 pm or later. Evening sales have seen the fastest growth, accounting for 8.7% of sales in company-managed shops in the year's second half.

The reach of delivery services has widened, now including 1,340 shops on Just Eat and 930 on Uber Eats, totalling 1,440 shops. Sales through these channels surged by 23.6% in 2023.

Greggs share price. 

The Greggs share price rose 3.50% to trade at 2807.0p from Monday’s closing price of 2712.0p.