Peak Greggs? The Data And A Trip To London Suggest The Growth Story Is Just Starting

Greggs offers an attractive valuation at 12x earnings and a 4.65% dividend yield, with a compelling 10.9% owner earnings yield. Fears of 'peak Greggs' are overblown; robust demand, underpenetration in rural areas, and a reasonable 3,500 store target support further growth. Vertically integrated, Greggs maintains cost leadership and high margins despite a capital-intensive model, with capex set to decline, boosting free cash flow.