Greggs has seen its like-for-like (LFL) sales increase by 12.7% in the year-to-date, while its total sales for the third quarter increased by 10.6% in the 13 weeks to 28 September.

The bakery chain saw its company-managed shop LFL sales also increase by 5% in the same period, while also jumping by 6.5% in the year to date.

Greggs said that this growth was supported by menu development and further progress in extending trading hours and new digital channels.

The firm added that in 2024, it has opened 152 new shops while closing 66, which includes 43 relocations, giving a total of 2,559 shops trading on 28 September.

This comprises 2,016 company-managed shops and 543 franchised units.

Furthermore, Greggs said that investment in its supply chain is “progressing well”, supporting its “ambitious growth plans”.

This includes the redevelopment of its Birmingham distribution centre and the extension of its distribution centre in Amesbury.

It also expects to sign the lease on its new frozen product manufacturing and logistics facility in Derby, which is set to open in 2026.

Investment director at AJ Bell, Russ Mould, said: "Greggs has pursued multiple avenues to achieve growth in recent years, including home delivery, evening trading and a successful move into vegan products, but there are some signs in its latest update that it may need to pull another rabbit out of the hat.

"While LFL growth of 5% is nothing to sniff at against a tricky backdrop it does represent a material deceleration for Greggs. When you add in the shares’ strong run over recent times, it is not entirely surprising to see a bit of market disquiet."

For the full year, Greggs said that its expectations are unchanged, while its overall level of cost inflation for 2024 is to be "towards the lower end of the 4-5% range previously communicated".

Furthermore, its capital expenditure for 2024 remains in the £250m-280m range, with the timing of the land purchase at Kettering being the primary uncertainty.

Mould added: "The company is not resting on its laurels. It continues to innovate in terms of its product range and it is also pressing ahead with its ambitious store roll-out programme. The nagging question for investors is when does Greggs hit saturation point?

"Greggs’ heavy investment in infrastructure to support further outlets suggests it sees continuing scope for growth for some time to come, and an excellent track record going back decades means it is likely to be afforded some trust by shareholders. However, achieving the scale of expansion which Greggs has outlined will not be easy and there could be some speed bumps along the way."

---