DAVY VIEW

Year-to-date trading for Greggs has been solid and ahead of expectations, with like-for-like (LFL) growth of 2.5% (VA: c.2%) accelerating to c.3.3% over the last ten weeks. Commentary on cost control was reassuring, with forward buying of raw materials and energy hedging supporting retention of its c.3% FY26 LFL inflation guidance. Accordingly, management has reiterated its full year guidance. We believe today’s update provides a clear rebuttal to structural concerns that have become baked into the equity valuation.