Greggs saw like-for-like sales at its company-managed stores grow 4.2% in the year to 31 December.
In the fourth quarter like-for-like sales were up 6.4% - excluding the festive fortnight, the figure was 4.1%.
Over the year total sales were up 7%.
During the period the group opened 145 new shops and closed 79, to end the year with 1,764 shops trading, including 157 franchised shops operated by partners in travel and other convenience locations. There were disposal gains in the year of £2.2m, which the company said was £1.5m to £2m higher than might be expected in an average year.
Greggs completed 208 refits to its “bakery food-on-the-go” format. It said it expected to refurbish shops at a similar rate in the year ahead “to maintain our modern, food-on-the-go experience for customers”.
The group said successes in Q4 had included its Festive Bake and traditional mince pies but that its growing strength in food-on-the-go was the main driver of sales. It said new ‘Balanced Choice’ bakes had proved popular along with hot food options such as burritos. The drinks range is to be extended to include Vanilla Latte alongside Fairtrade Peppermint Tea and Green Tea.
Chief Executive Roger Whiteside said: “We finished 2016 well, delivering our thirteenth consecutive quarter of like-for-like sales growth, and anticipate that we will report full year results for 2016 slightly ahead of our previous expectations. In the year ahead, whilst we will undoubtedly see a number of well-documented industry headwinds, we are confident we will continue to make progress with the implementation of our strategic plan, including significant investment in our capability to supply a growing shop estate.”
Separately the group announced it was now trialling its Greggs Delivered service in London. The service is currently only available within selected areas in London, where the delivery radius is 0.4 miles from Greggs Cheapside and Greggs Eastcheap, but the company said further trial locations were planned throughout 2017.
The service is also currently being trialled in Newcastle upon Tyne.
