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Greg (LSE: GRG) has proven to be one of FTSE 250The greatest growth shares in recent years. But the investor’s interest in the sausage dealer has diminished amid increasing risks to his long record of the high profits.
The average arrow’s growth growth (EPS) has reached 12 % annually over the past ten years. But with the city’s expectations below, it seems that the final lines have been appointed to the short -term performance:
| year | The expected profits of the share | Annual growth | The price ratio to profits (P/E) |
|---|---|---|---|
| 2025 | 135.26p | -10 % | 16.1 times |
| 2026 | 139.59p | +3 % | 15.6 times |
| 2027 | 150.25p | +8 % | 14.5 times |
More importantly, the final result of the Baker tends to rise again from 2026, although expected growth is still less than this average in the long run.
There are now two important questions that investors need to ask. How accurate is the current mediator estimates? Does Greggs buy a purchase after its heavy price decreased?
Trading problems
Despite its recent stability, the previous star value has decreased sharply since the fall. It is not that trading was terrible: similar sales in the company’s stores increased by 2.9 % in the first 20 weeks of 2025.
However, sales growth has decreased dramatically than investors used to. The corresponding sales increased by 7.4 % in the first 19 weeks of last year.
GregGs mainly reflects the main cost crisis and its impact on consumer spending. Despite its focus on low -cost baked goods, this only provides little protection due to its difficult conditions for its main customer base.
Divide a discount B & m He faces the same pressure. This week (June 4) warned that limited wage growth is “”especially [problematic] For consumer groups with a basic low income“.
Moreover, GregGs faced intense competition as food giants expand to expand quickly. Last month, Kentucky Fraid Chicken announced plans to open 500 other restaurants over the next five years, adding additional pressure.
Ready to apostasy
However, Greggs has profitable expansion plans on its own. The number of sites in its portfolio raised to 2638 of 1,664 a decade ago. He has plans to raise the total to 3500, with the support of new manufacturing facilities and logistical services in Midlands.
Baker also intensifies evening trading and investing in delivery to take over its competitors. Due to his strong record of implementation, I am optimistic that these measures will continue to push the long -term growth.
These new openings will focus on stores in the hot food points such as airports, train stations, and retail gardens. This is a shrewd option because the high street bears a steady decrease.
Finally, creating the Greggs’ Flair menu convinces me that it can flourish in a competitive market. In the last quarter, fresh additions to the excessive drink group of shelves flew, while pizza boxes, Mac and cheese also witnessed a strong demand.
In general, I am optimistic that the company can recover from the turbulent 2025, as the city analyst expects. I think this makes it a higher FTSE 250 class to look.
