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Supported by rapid expansion, profits in Greggs (LSE: GRG) have shot themselves in the last decade, which in turn has led their actions through the roof.
At £ 21.20 per share, Greggs shares are 154% more expensive than they were 10 years ago.
But it is the Ftse 250 Baker is still one of the best growth actions to consider buying today?
Growth forecasts
From a short -term perspective, maybe not. Analysts expect the growth of annual profits to be reduced by half this year before collecting percentages of a single digit improved in 2026:
| Year | Profit per action | Profit growth | Price ratio to profits (p/e) |
|---|---|---|---|
| 2024 | 134.74p | 8% | 15.9 times |
| 2025 | 139.49p | 4% | 15.3 times |
| 2026 | 150.96p | 8% | 14.2 times |
There are many other actions from the United Kingdom in the middle of the capital to provide a better growth in the next two years.
The growth drop scheduled for 2025 is not so surprising given the recent trade. The runners have been degrading forecasts after the news on January 9 that income increased 'only' 7.7% in the last quarter.
This decreased from 10.6% in quarter three and 13.8% in the first half.
Meanwhile, similar sales slowed in a tracking in the quarter quarter. They rose only 2.5%, lowering 5% in the previous three months.
Fears growing
However, trade has clearly been catastrophic. Last year, sales went through the reference point of £ 2 billion for the first time, with income growing even as the cost of life crisis extended. This is not the first time that Greggs has generated growth despite the difficult economic conditions.
However, it is also possible to understand why the market has been disappointed by recent numbers. The company's approach to low -cost food
On the other hand, the recent Greggs sales numbers have turned on concerns about whether the company's growth strategies, such as greater night trade, menu soft drinks and more clicks and collect, could run out of steam.
What follows?
Given the hard economic perspective, I would not be surprised if Greggs sales disappoint a little more, putting new stress at the price of their actions.
But my opinion is that the baker's growth perspective is still solid in the long term. That is why I have taken advantage of the recent weakness of prices to buy more of your shares for my own portfolio.
The new stores of the stores have been the basis of the very high profits of Greggs in recent years. And encouragingly, sees a greater scope for a more significant expansion.
The company added around 1,000 stores to its national network since the mid -2010 decade. It plans to cut the tape in another 800, taking the total of 3,500. In addition, the Baker plans to increase the openings of stores in lucrative travel destinations, such as airports and railroad stations.
A higher expansion will be supported by investment in new distribution and manufacturing sites. Last year, he announced new facilities in Derby and Kettering, scheduled to open in 2026 and 2027, respectively. There is a risk of execution here, but the strong Greggs record on this front should help calm the fears of investors.
I am also sure that the improved delivery and digital services of Greggs and the longest opening schedule of the store will help light a fire under a long -term earning growth.
As a result, I still believe that Greggs is still a majority of growth for investors to consider buying, despite the company's current problems.
(Tagstotranslate) category. Growth-Shares
