Greggs to carry on with plans for expansion despite economy

Liberum Capital analysts cut its 2012 earnings per share forecast by two per cent. “Longer term, we believe Greggs will remain under pressure from declining footfall on the high street,” they said.

Analysts at Shore Capital stockbrokers added: “There is no doubt that current trading is subdued at Greggs, with total sales ahead 3.3 per cent and like-for-like (LFL) sales declining 1.8 per cent.

“Whilst short-term upside may be limited ahead of evidence of an improvement in trading momentum, we continue to view Greggs as a medium term growth story, with the scope for +2,000 stores in the UK and ongoing margin potential from the investment and leverage on the manufacturing infrastructure.”