The baker chain’s sales have lifted over the last few months, as the UK's weather has improved. With almost 1700 outlets around the UK, Greggs feel they have reached saturation point, and any new outlets being opened are likely to coincide with closures. Its biggest focus is instead the regeneration of older outlets; in 2013 Greggs has so far refitted 141 shops, and plans to raise this number to 215 by the end of the year.
Shares are up almost 2% in morning trading, although they are still down 5% from the start of the year and a heavy 15.75% from March highs. They have struggled to break above the £4.45 price for the third time in the last six months, but doing so could see the share try to fill the gap set in April.
Even though the capital returns for shareholders have not been good, the income rewards do offer something to attract investors, with a dividend yield of 4.56%. The management feels that inflation is in line with their expectations and that the company’s cash position is strong.