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Greggs (LSE:GRG) is set to provide a trading update on Tuesday (20 May). And I think investors have reasons to be positive about what the FTSE 250 company is going to say.
So far, the stock has fallen around 30% since the start of the year. But I’ve seen recent signs things might be about to look up – at least in the short term.
Why has the stock been falling?
At first sight, it’s not entirely obvious why the stock has been falling. Total sales in 2024 grew 11%, pre-tax profits were up 13%, and earnings per share climbed 11% – that’s good, right?
Well yes, but while the headline news is good, there are some slightly concerning aspects. One is that around half of that growth came from opening new stores, which the firm can’t do forever.
Like-for-like sales (which measures revenues adjusted for changes in store count) came in at 5.5%. And the even bigger concern is…
