Greggs - Continuation of strong trading in FY23

Greggs’ strong sales performance in the first 19 weeks of the year is in line with management’s expectations and therefore its profit expectations for the year are unchanged, as are our forecasts. Greggs continues to benefit from underlying volume growth despite the squeeze on household budgets and high industry-wide selling price inflation, which is testament to its ongoing product innovation and initiatives to drive growth. Our discounted cash flow (DCF)-based valuation of £30.50/share is unchanged.