Shares in Newcastle-based bakery chain Greggs rose on Tuesday, after strong Christmas trading led it to raise its profit guidance.
In a fourth quarter trading update, Greggs said it saw total sales rise 7 percent over the year. Company-managed shop like-for-like sales rose 4.2 percent, completing 208 refits and opening 145 new shops over the course of the year.
After better-than-expected trading of Christmas goods, the company reiterated that full year results anticipated to be slightly ahead of previous expectations:
“We finished 2016 well, delivering our thirteenth consecutive quarter of like-for-like sales growth, and anticipate that we will report full year results for 2016 slightly ahead of our previous expectations”, commented Greggs chief executive Roger Whiteside.
However, the company added that greater uncertainty going into 2017 may have an effect. Whiteside continued:
“In the year ahead, whilst we will undoubtedly see a number of well-documented industry headwinds, we are confident we will continue to make progress with the implementation of our strategic plan, including significant investment in our capability to supply a growing shop estate.”
Looking forward, the company said they are “confident of making further progress as we implement our plan to grow Greggs as a modern food-on-the-go brand.”
Shares in Greggs (LON:GRG) rose on the news, currently trading up 3.10 percent at 1,032 (1002GMT).
The figures come after the chain announced it would be trialling a delivery service in London earlier this week. The company said that almost everything on the Greggs menu would be available, but the service is currently only available from two London stores: Greggs Cheapside and Greggs Eastcheap.