Greggs bucked the trend this morning by stating that it expects cost pressures to ease over the next 12 months.
Operators have painted a gloomy outlook for the market since the New Year, but Greggs is adamant that things aren’t about to get worse.
While the company expects to face industry-wide cost pressures to continue in the year ahead, it believes they will be at a “lower level” than it experienced in 2017.
The company, which runs 1,800 shops, said it will continue to focus on delivering the value and taste it is known for in order to enhance its position.
It predicts 2018 will be a record year for investment in its supply chain as it installs many of the centralised manufacturing platforms that will provide the capacity for further growth of the business.
It also intends to increase the number of shops that it opens in the year in line with its strategy to grow Greggs as a leading food-on-the-go brand.
Total sales at the firm for the past 12 months grew 7%, according to a fourth quarter trading update, with like-for-like sales up almost 4%.
Chief executive, Roger Whiteside, commented: “We finished 2017 well, delivering our seventeenth consecutive quarter of like-for-like sales growth, and anticipate that we will report full-year results for 2017 in line with our previous expectations.”