Greggs Shares Sweet, But PPI Weighs on Lloyds

The Week: Vegan sausage rolls have helped Greggs shares soar, but a recent correction in the share price could be a buying opportunity, says Morningstar columnist Rodney Hobson

Rodney Hobson 2 August, 2019 | 10:10AM

greggs

Shares in food retailer Greggs (GRG) have come off the boil after a tremendous run that took them from 950p just over a year ago to a recent peak of £24.76, but it is hardly surprising to see a correction after a more than doubling of the price. Shareholders, including me, can confidently expect the upward trend to resume.

Sweet Taste

Results for the 26 weeks to June 29 showed total sales up 14.7% to £546 million with like-for-like sales 10.5% better. Pre-tax profit margins improved from 5.4% in the previous first half to 7.5%. That is a tremendous performance given the general state of the High Street. Clearly Gregg’s 2,000 outlets are quite something.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Greggs PLC1,516.00 GBX-4.41
Lloyds Banking Group PLC30.11 GBX-1.75

About Author

Rodney Hobson

Rodney Hobson  is a columnist for Morningstar.co.uk and author of several investing books, including The Dividend Investor and How to Build a Share Portfolio.

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