Greggs’ enduring recipe for success on the high street
Moneyweek article from April 2025
Greggs has transformed from a small Newcastle bakery into a national institution, achieving steady growth through strategic store expansion, operational efficiency, and menu innovation. Despite a recent 50% share price drop, its robust fundamentals and over 3.5% dividend yield suggest continued profitability for patient investors.
Interesting question. The easy answer is, they are buying capacity for 3,500 sites, which is a c. 40% uplift from here. If you assume no cannibalisation of existing stores, that's the upside. You'll get inflation from there but not else.
However, good businesses with good managers do find new ways of exploiting their investments to find growth. Ways, which we haven't thought of yet. I wouldn't bet on it, and I'm not invested presently, but I wouldn't discount the possibility of some innovation yet to be thought of
Best
WS
Great article! Greggs is a stock I really like. One question I like to ask—how do you see Greggs expanding in the future?