Greggs shares rise on outlook, dividend
Greggs' shares rise more than 3% after the food-to-go retailer pointed to a rosy 2024 after a 13% rise in 2023 pretax profit. IGTV's Angeline Ong looks at why Greggs' business model and shares are indicating further upside ahead.
(AI Video Summary)
Greggs' share price on the rise with positive outlook
UK retailer Greggs, famous for its vegan sausage rolls and steak bakes, is seeing impressive growth and predicts another successful year in 2024. Their profits for 2023 rose by 13%, and they anticipate even better results this year. Investors have taken notice, causing Greggs' shares to rise by around 3.7% on the IG platform. Excitingly, the company plans to reward its shareholders with a special dividend.
Greggs' pricing strategies
One reason for Greggs' success is their clever pricing strategies, which have attracted customers struggling with the high cost of living in the UK. Additionally, Greggs' ability to provide affordable and convenient food options has played a significant role in their popularity. You can see their growth reflected in their chart patterns, where they have surpassed the important 61.8 level on the Fibonacci chart. This indicates potential upward movement, suggesting that their share price may continue to rise. For example, if the trend continues, Greggs' stock could reach around 29.16, which was similar to its price in early May of the previous year.
Despite already experiencing a 17% increase in share price since September 2022, Greggs still has room to grow. Their ability to offer cost-effective food-on-the-go, especially for breakfast, has pushed them ahead of even McDonald's in the UK breakfast market. With this momentum and their market dominance, Greggs' share price is expected to continue its upward trajectory.
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