British bakery and fast-food chain Greggs said today that its sales recovery was stronger than anticipated.
Greggs also said that a sustained recovery from the Covid-19 pandemic could boost its annual profit.
Its shares rose 3% to 2,632 pence in early trading after the company said like-for-like sales in shops managed by Greggs were up between 1% and 3% in recent weeks compared to the same period in 2019.
"Since (the easing of restrictions on non-essential retail) we had expected to see increased competition as cafes and restaurants were allowed to compete more effectively with our largely take-out offer," the company said in a statement.
However, Greggs warned that pent-up demand had reduced.
While the company's shops have been able to stay open through the Covid-19 pandemic, the crisis has disrupted its business model which relies on a high volume of customer visits.
Last month, London-listed Greggs raised its profit outlook, despite like-for-like sales in the eight weeks to May 8 falling 3.9%. Previously, the company had said it did not expect profit to return to pre-pandemic levels until 2022 at least.
The company, best known for its sausage rolls, steak bakes and vegan snacks, is set to report its interim results on August 3.
