It was another week of turmoil for markets last week, and current sentiment suggests the start of October trading won’t be any better. Nevertheless, we hope it will be a little more relaxed. There are several companies reporting updates this week, but we have our eyes on some food-focused stocks — Tortilla, Greggs and Tesco this week:
- Tortilla Mexican Grill is scheduled to report its interim results Monday, October 3.
- Although down almost 20% this year, Tortilla shares had made gains in the last few months before last week’s decline.
- Slightly positive demand trends have emerged for the fast-casual restaurant chain, with Google Search Trends remaining steady, above pre-pandemic levels. However, understanding online demand trends for companies that deliver via third parties is tricky.
- A first-half trading update in July showed group revenue rose 60% compared to 2021, while its presence in London has been increased by its £2.75 million acquisition of Chilango in May.
- We are currently Neutral ahead of the release.
- Greggs is set to post a third-quarter trading update Tuesday, October 4.
- As mentioned, understanding online demand trends for companies that deliver via third parties (Tortilla included) is slightly more difficult, but it can only be a good sign that Google searches for Greggs have steadily risen over the last few years as the bakery chain continues to grow its legendary status.
- In its interim results, Greggs revealed sales rose 27.1% and said it continued to perform well despite inflationary pressures.
- Tesco’s interim results will be released Wednesday, October 5.
- The question ahead of the release is whether the supermarket giant has been able to compete with the rise of discount chains such as Lidl and Aldi as the cost of living crisis weighs on consumer spending.
- Even so, supermarkets generally have some protection during economic downturns as consumers still have to purchase essential products.
- Even so, despite a rise in September, traffic to the Tesco website dipped further from March.
- In addition, Tesco was one of the more expensive supermarkets overall over the last few months, according to Which.