Thank you for your analysis, but I have a different opinion.
Customers have loved Greggs for decades and the Sausage Rolls are a big seller. The vegan alternatives are the best rated online and Greggs has already reached an unbelievable size (3000 stores while McD only has around 1700 stores) has double the number of stores in the UK than McDonalds.
Over the past 10 years, sales have increased by an average of 9% and FCF by 17%. The fact that FCF is currently suffering somewhat is due to high CAPEX in the short term, as they continue to invest in logistics infrastructure (2 additional locations). For this reason, investment costs are expected to remain high until 2026. Greggs has an ROIC of over 20% and hardly any debt. With their app, they also generate a great deal of insight into customer wishes and The loyalty app is already increasing the frequency of visits and the average basket size. With a gross margin of over 60%, these key figures and the historical development, Greggs is valued more than favorably.
Thank you for your analysis, but I have a different opinion.
Customers have loved Greggs for decades and the Sausage Rolls are a big seller. The vegan alternatives are the best rated online and Greggs has already reached an unbelievable size (3000 stores while McD only has around 1700 stores) has double the number of stores in the UK than McDonalds.
Over the past 10 years, sales have increased by an average of 9% and FCF by 17%. The fact that FCF is currently suffering somewhat is due to high CAPEX in the short term, as they continue to invest in logistics infrastructure (2 additional locations). For this reason, investment costs are expected to remain high until 2026. Greggs has an ROIC of over 20% and hardly any debt. With their app, they also generate a great deal of insight into customer wishes and The loyalty app is already increasing the frequency of visits and the average basket size. With a gross margin of over 60%, these key figures and the historical development, Greggs is valued more than favorably.
Thank you for your input. much appreciated. The incite you shared is fascinating. You might be onto something