Is there still room for even more growth in the Greggs share price?

first_img Greggs (LSE: GRG) is the UK’s leading bakery retailer with over 1,900 shops across the UK. Demand for the bakery chain’s products has skyrocketed in recent years owing to numerous factors. Not to mention the introduction of the vegan sausage roll that fuelled an explosive profit boom! However, are today’s investors too late to the party when it comes to buying shares in Greggs?Despite the “death of the British high street”, Greggs has continued to grow exponentially over recent years, conquering Britain in the process. Greggs now boasts a bigger UK presence than both McDonald’s and Starbucks owing to significant investment in the business, a quality and expanding range of products, and an open-minded approach to new ideas. 5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Take the vegan sausage roll as an example. Since its launch in 2018, the bakery chain posted a 58% rise in first-half profit marking the company’s best ever sales growth, according to the Financial Times! The bakery chain opened 138 new shops last year with plans for more to come in 2020, and even upgraded its full-year profit outlook last November thanks to stronger-than-expected sales led mainly by increased customer visits. According to chief executive Roger Whiteside, the traditional sausage roll is still the bakery’s best seller but, the meat-free vegan counterpart has already made its way into the top five best-selling products!Greggs has become a strong and trusted brand cementing its position as the customers’ favourite for food-on-the-go and it is hard to see this changing any time soon. What attracts many investors to Greggs is the way in which it carries out business in a responsible manner, delivering sustainable long-term growth. The management team at Greggs have shown that not only are they able to spot emerging market trends (as with the recent rise in vegan food products), but also, they are capable of executing an effective strategy which responds to such market trends and satisfy the demands of consumers, delivering when it matters. This ability is key to the success of any firm and the degree to which Greggs has accomplished this reflects a strong business model with great future prospects.It’s not that all that straightforward though. A P/E ratio of 33.73%, means that shares in Greggs are classified as quite expensive however, it is worth noting that there is undoubtedly a good reason for this, as touched upon briefly in this article. In the final analysis, so long as Greggs can continue to sustainably grow its earnings, then the price of the stock will continue to rise. It’s as simple as that! Don’t be fooled by what may seem a high price to pay for shares in any given company when there is still perhaps plenty of room to grow and expand.In the case of Greggs, ever-increasing sales combined with the release of more new products such as the vegan steak bake and breakfast options do not signal a business that is in any way slowing down. For the 52 weeks ended 28 December 2019, total sales again rose 13.5% on year and like-for-like sales were up by 9.2%. These figures, coupled with a positive business outlook demonstrate that overall, Greggs is a quality company with the potential for further growth that certainly deserves consideration in any portfolio. Our 6 ‘Best Buys Now’ Shares Image source: Getty Images. Matthew Dumigan has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Is there still room for even more growth in the Greggs share price? Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Simply click below to discover how you can take advantage of this. Matthew Dumigan | Tuesday, 28th January, 2020 | More on: GRG center_img I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! “This Stock Could Be Like Buying Amazon in 1997” Enter Your Email Address I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. See all posts by Matthew Dumiganlast_img

Leave a Reply

Your email address will not be published. Required fields are marked *