Newcastle food-on-the-go favourite Greggs has seen its shares rocket 13% on the back of the soaring success of its vegan sausage roll.
Rising demand for its vegan sausage rolls – launched in January – has led to the the chain upping its full-year profit outlook, thanks to “exceptional” sales growth.
Shares in the group jumped in early trading after the profit cheer, which came as it reported an 11.1% jump in like-for-like sales over the 19 weeks to May 11.
It made the move after it saw demand outstrip supply earlier in the year, when the savoury rolls were only available in half of its portfolio of shops initially.
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The group, which has nearly 2,000 shops across the UK, said sales are now set to beat forecasts for 2019 despite strong trading from a year earlier, with underlying profits expected to be “materially” higher than predicted.
In a trading update, Greggs said: “The exceptional level of like-for-like sales growth that began in January has been sustained in the months that have followed, driven by increased visits to our stores.
“Looking forward, the sales comparatives from 2018 become progressively stronger but we now anticipate materially higher sales for the 2019 year as a whole than we had previously been expecting.
“Whilst there have been some increases in input costs, we expect overall cost inflation to be broadly in line with our plans for the year. In the balance of the year we plan to increase investment in strategic initiatives that will deliver further long-term growth.
“Taking all this into account, the Board believes that underlying profits (before exceptional costs) for the year will be materially higher than its previous expectation.”
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Greggs said it had launched another vegan product as part of its new summer menu - a new and improved mexican bean and sweet potato wrap - as it continues to tap into the growing food trend.
The new menu also features pasta salads, fruit and cold drinks, it added.
Greggs has continued to expand across the UK as it brushes off tough high street trading conditions impacting other retailers.
It opened another 38 shops in the first 19 weeks of its financial year, although 22 were shut, which helped total sales rise 15.1% against 4.7% a year earlier.
It now has 1,969 shops trading, comprising 1,700 company-managed shops and 269 franchised units, and added that the success sites such as its new unit at London Bridge station gives the firm confidence to pursue further openings in similar locations.
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