Greggs has reported like-for-like sales in its company-managed stores up 3.7% for the year to 30 December.
In the fourth quarter like-for-likes were up 3% in the managed sites.
Across the year, in which 131 new shops opened and 41 closed, total sales grew 7.4%.
The performance compares to 4.2% growth in like-for-likes and 7% in total sales for the 2016 financial year, and 6.4% in Q4 2016.
Greggs ended 2017 with 1,854 shops, 202 of which are franchised shops. In the year ahead the company plans to increase the rate of shop openings, with the number of net additions expected to be in the 110-130 range.
In 2017 Greggs converted 132 company-managed shops to its “bakery food-on-the-go” format while franchisees refurbished a further 10 units. The company expects to refurbish around 100 shops in the year ahead.
On the outlook, the company said: “Looking forward we expect industry-wide cost pressures to continue in the year ahead, albeit at a lower level than we experienced in 2017. In an uncertain consumer environment we will continue to focus on delivering the outstanding value and taste that Greggs is famous for.
“2018 will be a record year for investment in our supply chain as we install many of the centralised manufacturing platforms that will provide the capacity for further growth of the business. We intend to increase the number of shops that we open in the year in line with our strategy to continue to grow Greggs as a leading food-on-the-go brand.”
The group said classic favourites continued to sell strongly, while seasonal products such as the Festive bakes also proved popular. Hot options and the gluten-free ‘Balanced Choice’ soups continued to gain traction. The group extended its hot drinks range to include a caramel latte and, in the New Year, has introduced a new focaccia-style pizza.
Chief Executive Roger Whiteside said: “We finished 2017 well, delivering our seventeenth consecutive quarter of like-for-like sales growth, and anticipate that we will report full year results for 2017 in line with our previous expectations.
“In the year ahead, we will continue to focus on delivering the outstanding value and taste that Greggs is famous for. 2018 will be a record year for investment in our supply chain and we intend to increase the rate of new shop openings as we continue to grow Greggs as a leading food-on-the-go brand.”
