Greggs, the high-street baker and coffee operator, is to expand its breakfast offering – after the introduction of a bacon sandwich became one of its best selling products.
In an interim management statement released this morning the company said it would be extending its breakfast menu and planned to introduce a range of croissants, pain au chocolat and porridge.
Unveiling total sales growth of 2.6% and a like-for-like sales increase of 0.5% in the 36 weeks to 2 October, the company said it continued to make good progress – despite “an increasingly challenging trading environment”.
The company now has 17 of its new concept shops – which feature a more contemporary look - and said it was on course to refurbish a further 120 stores, of which 30 will be the new look outlets.
As of 2 October Greggs operated 1,451 shops and it expects to add an additional 50-60 units before the end of the year.
The group, which is led by chief executive Ken McMeikan, said there had been no material change in its cash position of £24.6m on its balance sheet.
In the second half to date Greggs has purchased for cancellation a further 290,865 shares at an average price of £4.40 and a total cost of £1.3m, making a total outlay on share buybacks in the current year to date of £5.8m. It said this was in line with the plans announced in March to return up to £15m of surplus cash to our shareholders.
McMeikan, Greggs chief executive, said: “"As we expected, the trading environment has been tough and is likely to remain so, with consumer spending continuing to be constrained and inflationary pressures building for next year.
“We anticipate that like-for-like sales in the final quarter will be broadly flat and therefore marginally positive over the year as a whole. We continue to keep a very tight focus on costs and our financial position remains strong.
“Overall business performance in the year continues to be in line with our expectations and we believe that Greggs remains on track to deliver another year of progress in 2010."
