Greggs Faces Analyst Caution Amid Strong Performance
- Greggs operates approximately 2,500 stores in the UK, with 500 being franchised.
- A long-serving executive recently sold £1.85 million worth of shares, indicating potential concerns about the company's valuation.
- Analysts are advising caution, leading investors to reconsider their positions in the bakery chain.
In the UK, shares of Greggs, a prominent bakery chain listed on the FTSE 250, have recently surpassed £27 each. This surge in share price comes amid a period of strong performance for the company, which operates around 2,500 stores, including 500 franchised locations. However, there are signs of caution among analysts regarding the sustainability of this growth. Notably, a long-serving executive recently sold £1.85 million worth of shares, raising concerns about potential overvaluation. The company is well-known for its popular products, including £1.25 sausage rolls, pastries, sandwiches, and hot drinks. As investors weigh the implications of these developments, the question arises whether it is prudent to continue investing in Greggs or to consider stepping back from the stock.