Professional
Added to YB: 2024-02-26
Pitch date: 2024-02-26
GRG.L [bullish]
Greggs plc
-29.75%
current return
Author Info
Sweet Stocks is a former portfolio manager at an international small cap fund who shares pitches for international equities. Sign up for his blog.
Company Info
Greggs plc operates as a food-on-the-go retailer in the United Kingdom. It offers a range of fresh bakery products, sandwiches, and drinks.
Market Cap
GBP 1.7B
Pitch Price
GBP 24.60
Price Target
N/A
Dividend
4.07%
EV/EBITDA
6.09
P/E
14.22
EV/Sales
0.99
Sector
Hotels, Restaurants and Leisure
Category
growth
Greggs – last one standing
GRG.L: Greggs, the UK's favorite fast food chain, has shown resilient growth & margins over 30 years. Real sales/store +2% CAGR since '93. Repositioned as national champ under CEO Whiteside '13-'22. Peers like Costa, BK struggling but Greggs thriving. '26 sales target of £2.4B (+10.6% CAGR) via new stores, evening trade & delivery. ROCE 20%+, OP margin ~10%. 19.5x P/E falling to 15.6x '26E as EPS +7% vs consensus. Risks: LFL slowdown, margin pressure.
Read full article (11 min)