Greggs has announced a 7.4% rise in like-for-like (LFL) sales as the bakery chain reported it is making “good progress” across all channels.

The group’s latest trading update, covering the first 19 weeks of 2024, revealed that delivery sales, evening trade and increased participation in the Greggs App had all supported transaction volume growth.

Total sales over this period, running from the start of the year to 11 May, reached £693m – up on the £609m the bakery chain reported for the same period last year.

Greggs has opened 64 new shops in the year so far, including 15 with its franchise partners. It has also closed 37 shops, including 23 relocations, giving the group a total of 2,500 shops that are currently trading – comprising 1,986 company-managed shops and 514 franchised units.

The bakery chain repeated that it remains confident it can hit between 140 and 160 in net shop openings across the full year.

Manager of the quality shares portfolio at Wealth Club, Charlie Huggins, commented that Greggs had made a “solid start” to 2024.

“LFL sales are growing nicely and with no change to cost inflation expectations, the group has reiterated its full year guidance,” Huggins added.

“Greggs’ brand continues to resonate strongly with the UK consumer, despite the weak economic backdrop. The roll out of new stores, extended opening hours and new menu items like pizza and pasta should all help to sustain this momentum.

“That said, Greggs’ shares are not as cheap as its pasties. This means it will need to maintain strong progress in order to keep investors happy.”

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