Is Greggs Share A Buy

last updated on

Is Greggs Share A Buy

Is Greggs Share A Buy Or Not?

The share price of Greggs declined by 15% within a span of just 1 day. Also, the trading performance of Greggs was not that good in the last 26 weeks.

So, what's going on with the share price of Greggs, and what's the core issue? The biggest issue was the hot weather, which led to fewer sales. A decline was seen in the sales (like for like) when compared with the data from last month.

Bad Weather Impacts Greggs Revenue

After the decline, the company is now also expecting a decline in its operating profits for the entire full year. Once again, that's also a reason why the investors were disappointed with Greggs.

But, there is also good news, and one of them is the increasing store count. More stores have allowed Greggs to increase its revenue by 7%.

Overall, the unusual weather isn't something that would impact Greggs' sales. So, we can classify it as a short term issue, which means the sales will likely improve in the coming months.

But if the sales remain weak in the coming months, it would mean unusual weather isn't the only thing weighing on Greggs.

According to some analysts, the underlying business of Greggs faces numerous risks. From higher competition to shrinking margins, there's a lot to fight against!

Also, Greggs can't just keep opening new stores to increase its revenue. In order to actually improve things, Greggs would have to take bold measures.

This has proven to be less resilient than investors may have initially believed over the past year or so. The weather turns out to be a real danger.

However, at current prices, the 4% dividend yield is sufficient, in my opinion, to offset some future growth prospects that may be limited. I'm thinking of purchasing the stock as a result.

So, if the 4% dividend yield sounds exciting to you, the current share price of Greggs can be the best entry in the market.

Trending Stories