Greggs Plc £GRG - A Valuation On 9th June 2021
The stock has rallied consistently for the last nine months, and a strong recovery is baked in. But, can this bakery chain successfully navigate the structural changes around how we work and travel?
Greggs is a bakery food-on-the-go retailer in the UK. It offers a range of fresh and frozen baked goods, sandwiches and drinks. The company sells its products through its shops in travel, leisure, and work-centred catchments and franchised shops operated by partners in travel and other convenient locations.
As of May 2021, the company had more than 2,000 retail outlets across the country, including 300 franchised shops.
The Story - A strong recovery baked in
Greggs has been an incredible story of consistent and profitable growth. But, unfortunately, last year was the only year in which the company’s revenue went backwards.
The business has thrived by positioning itself in convenient locations to capture commuter, office worker, and traveller spend and by owning and controlling its supply chain (from industrial bakeries to logistics and delivery). This supply chain control helped the company pivot towards delivery during the…