Greggs shares have been a strong performer in 2023, up 14.5% this year and at its highest levels since February last year.

The bakery fan favourite (who doesn’t love a Greggs) reports its preliminary results on Tuesday, with investors keeping a close eye on cost and price inflation as the UK continues to battle with soaring inflation.

In the retailers fourth quarter trading update back in January, the group reported total sales growth of 23% and LFL sales for FY22 up 17.8%. Investors will also keep a close eye on the group’s store expansions, with Greggs recently expecting to open around 150 new stores in 2023.

As a result of strong trading, Greggs anticipated full year outcome in line with prior expectations. The cost-of-living crisis has yet to cause a significant impact to consumer spending, with a resilient end to 2022. But with constant recession talks, investors will be keeping a close eye on key retailers such as Greggs.

Analyst Harishankar Ramamoorthy at Deutsche Bank raised Greggs to a Buy rating back in January. The analyst stated that 2022 saw UK Pubs & Restaurants sector bear the brunt of the cost of living crisis, however a recovery has been imminent. He also described the outlook for 2023 as a “glass (second) half full.”

Can’t go wrong with a little positive thinking.

According to TipRanks, two analysts currently hold a Buy rating on the stock whilst one analyst has a Hold rating. Its shares have a average price target of 3,075p.

By Jamel Boughedda