- The evolution of Greggs’ growth strategy could see it emerge from the pandemic with better long-term prospects
- The resilience of the bakers’ brand, balance sheet, supply chain and customer base make it a strong recovery play
Tip style
Value
Risk rating
Medium
Timescale
Medium Term
Bull points
- Supply chain investment almost complete
- Resilient customer base
- Digital push
- Attractively valued for recovery
Bear points
- Potential Brexit disruption
- Covid-restrictions are still hurting
- Dividend suspended
It’s been a horrible year for the UK’s favourite dining brand, Greggs. Lockdown has meant temporary shop closures and a sharp reduction in sales at the value-for-money bakery chain. Brexit and its potential inflationary impact on ingredient prices could prove another blow, and Greggs’ shares have recently been giving back some of the gains clocked up following last month’s positive vaccine developments.