Greggs plc (GRG · LSE)
Chasing Growth Beyond the High Street
Britain's best-known bakery chain bakes and sells cheap, fresh food and coffee from thousands of shops, and is now pushing into petrol stations, supermarkets and airports.
Bull case for Greggs plc
Owning the factories keeps prices low
Making its own food in its own bakeries lets Greggs undercut rivals and still profit.
Thousands of potential shops yet to launch
Greggs sees room for at least 3,500 UK shops, well above its current estate.
New channels reach people beyond the shops
Supermarket packs, delivery apps and forecourt kiosks sell Greggs food without a shop.
Bear case for Greggs plc
Squeezed shoppers set the ceiling
Management says pressure on household incomes is the biggest brake on the market.
New depots add cost before they add sales
Derby and Kettering carry running costs from day one, ahead of the shops they serve.
Almost all the money comes from Britain
One country, one economy, one weather pattern decide nearly all of Greggs' sales.