Market movers: Greggs' serves up impressive results

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Budget food to go retailer, Greggs PLC (LSE:GRG), pleased the market as a strong set of first half results sent the shares up 2.31% to 2,126p today.

AJ Bell investment director Russ Mould said:

“Greggs’ proposition seems to be holding up well amid cost-of-living pressures.”

“Clearly its relatively cheap offering is resonating with cash-strapped consumers who are perhaps trading down from more expensive options.”

“The danger for Greggs is that people make their own packed lunches at home rather than grabbing food and drink on the go but there is little sign of that shift happening at any scale just yet.”

 “Profits are flat but that is probably not a huge concern for investors in the short term. Cost inflation was a factor but of more significance was the one-off reversal in VAT and business rate breaks offered during the pandemic.” Mould added.

Total sales grew 27.1%, with 22.4% like for like sales growth in the first half of 2022.