Getting hammered on Greggs. Brought with my heart, not my head. Again, love the product, cheap fast food. And warm food is a win in winter. BUT the majority of their stores are in towns and cities. Retail footfall is dying and no one is rushing back to the offices.
Not sure when you bought in, but there’s been a pretty good rebound to £14-15 recently, so hope you are not too far off break even.
I feel I must bring something to your attention re: their estate. “With respect to customer type, Greggs is not overly exposed, versus its peers, to the non/slow return of office-based workers back to their offices post lockdowns. Just 5% of the customer base works in the finance, legal and IT professions, where a return to the office appears unlikely in the near term. The majority of the customer base is either unable to work from home due to the nature of their jobs, ie those employed in health, retail, education, manufacturing etc, or are students, retired or not employed.”
Not that this is to bring any necessary comfort, but thought it worth mentioning.
Should say, that is from the Edison broker note of 05.08.2020.