The Greggs share price popped on Tuesday after the company published the relatively strong Q3 trading statement. The GRG stock surged by more than 4% and reached a high of 2,991p, which was substantially higher than Monday’s close of 2,873p.
GRG had a strong quarter
Greggs is a leading food-on-the-go retailer with more than 2,100 stores in the UK.
The company delivered a relatively strong third-quarter trading statement as the recovery continued. The firm’s sales rose by 3.5% in the third quarter even as the company continued experiencing staffing and supply chain disruptions.
The company also boosted its delivery options. 943 of its stores are now offering food delivery services. At the same time, the company opened 84 stores this year as it closed 16 underperforming stores. It expects to open about 100 new stores this year. Also, the company expects that its total number of stores will reach 3,000 in 2022.
However, like all companies in the industry, the management lamented about the current challenges facing the industry. It is facing inflationary related challenges even as it struggles to fill workers. Also, the company is struggling to find some ingredients.
The firm expects to grow its estates to 3,000 shops, grow its delivery business, and improve its supply chain and IT networks.
Greggs share price forecast
The daily chart shows that the Greggs share price has been in a major bullish trend in the past few months. The stock has risen by more than 167% from its lowest level in September last year.
Along the way the stock has formed an ascending channel that is shown in green. It is also along the 25-day and 50-day moving averages while the Relative Strength Index (RSI) has made a bearish divergence pattern.
Therefore, the stock will likely hold steady as investors target the next key resistance at the YTD high of 3,150p. On the flip side, a drop below the key support level at 2,853p will invalidate the bearish view.