While Greggs is to serve up flat whites and an improved mocha range after hailing an “excellent” year, shareholders aren‘t so convinced.
The high street baker recorded 5% sales growth in the period for the year, boosted by sandwiches and drinks, with demand for salads and ‘no added sugar’ drinks rising Mince pies and ‘festive bake’ ranges were also popular with customers. Greggs has been slowly revamping its menu to appeal to health-conscious consumers, include breakfast options and capitalise on the burgeoning food-to-go market.
The chain, which has more UK stores than McDonalds, refurbed 222 outlets in 2015 including the conversion of 20 larger bakery cafÃ©s to the ‘bakery food-on-the-go‘ format. Although there was some slowdown in growth in the fourth quarter, the retailer said the programme “continues to go well” and will be invested in at a similar rate in 2016.
“2015 saw us deliver another excellent year of progress as we continue to transform Greggs into a modern, well-invested food-on-the-go retailer,” said Chief Exec Roger Whiteside.
“In the year ahead we will continue with the implementation of our strategic plan to enable the business to compete more effectively in the food-on-the-go market,” he added.
Seemingly, investors in Greggs have not been swayed by the sausage roll seller‘s new menu offering, as shares fell 9% on Tuesday morning