Greggs’ steak bakes and sausage rolls are still popular in Britain, even after Greggs dethroned McDonald’s as the most popular breakfast place.
Roisin Currie said that Greggs’ breakfast deal, which costs about£2.75 per breakfast roll with coffee, helped it to achieve bumper results for the full year.
Greggs’ share of breakfast food-to go visits grew to 19,6 percent last year. This was the first time that Greggs surpassed McDonald’s in the market.
Currie stated that despite the rising cost of living, “there is a trend in Britain where consumers are eating breakfast away from home”.
Greggs was founded by John Gregg in Tyneside as a baker in 1939. They sell sausage rolls both meat and vegetarian, along with other baked goods. It currently has 2,473 stores and will open 140 to 160 new shops in the coming year. This includes supermarket chains like Sainsbury’s.
It will open additional outlets at petrol stations, train stations and airports in order to capitalize on the recent revival of travel after the pandemic and the evening food market. After a successful test with Just Eat, it has expanded its delivery service to include Uber Eats.
London-listed company has been able to win over a nation that is struggling financially with their cheaper treats. Other companies in the hospitality industry have also struggled. The company is on track to achieve its five-year goal of doubling sales by 2026, as sales and profits were better than expected.
Profits increased 27 percent to £188.3 millions before taxes in 2023 from £148.3million in 2022. Revenue grew 19% to £1.8 billion from £1.5 billion.
Greggs reported that its market share reached a new record last year, with its share total for food-to go visits rising to 8.2 percent from 7.7 percent in 2022.
The company reported that it had a good start to its new financial year. Sales in stores managed by the company were up 8.2 percent in the first nine week of 2024.
Greggs’ record-breaking results led it to distribute a £17.6million bonus pot to its 25,000 employees and a special 40p dividend to shareholders.
Currie stated that she was confident the company’s value proposition would be a success this year, and she reiterated her decision not to raise prices beyond 2024. She stated that the company expects its own inflation to be between 4 and 5 percent this year as the incoming wage increases will offset deflation within the supply chain.
She also added that Greggs “was not complacent” regarding the tough conditions on high streets. She added that “the consumer is still under stress in terms of disposable income.”
Currie believes that the increase in the national living wages in April could lead to a boost in consumer confidence. She said that the increase in the national living wage could put more money in the pockets of consumers.
Currie didn’t expect Greggs would overtake McDonald’s on other food-to go areas. She claimed that the US fast food chain was “significantly” ahead of them. We are just entering dinner market, and our share is currently 1.6%. It’s a tiny market… we will continue to work on the other parts of lunch and dinner, but [we] are not expecting to surpass them.”
Julie Palmer, partner at Begbies Traynor said: “Greggs rose to the occasion yet again. Delivering another strong set after a rapid year of growth, that underpins the status of the UK’s favorite high street bakery.
The success of Greggs delivery partnerships, extended trading hours, and an efficient supply chain clearly demonstrate that the management is finding the right ingredients for driving sustainable growth along with the store opening program.
Greggs shares rose 58p or 2.1% to £27.74. The stock price has increased by nearly 8 percent in the last year.