Greggs (GRG) has been on a roll since it upgraded profit guidance last November. Management has been warning that growth would slow in the second half of this year, but it doesn’t appear to be happening anywhere nearly as quickly as expected.
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The group again upgraded profit expectations in its latest trading statement owing to increased customer visits, prompting the share price to climb more than 16 per cent on the day.
Management did not give details on how far ahead of expectations profits would be, but brokers Peel Hunt and Investec upgraded forecasts by 4.5 per cent and 4.6 per cent, respectively. The former, however, warned that the outbreak of African Swine Flu in China would prompt higher pork prices and negatively impact the group.
