Cheap UK fast food has been a market that investors have expcted to perform well. But two of the market's leaders seem to have had a less than smooth ride in recent weeks. In this article for our Armchair Trader Plus+ subscribers, we look at Greggs [LON:GRG] and Domino's Pizza [LON:DOM], to see which stock looks best positioned for investors in 2025.
Starting with Greggs, we see that profits are up, but it’s not the stellar performance the market is used to. The picture at Greggs is far from ugly, though; a rising dividend and sector leadership might be enough to keep shareholders around through a tough spot for all consumer-facing businesses.
That said, the Greggs share price has been slipping since the last set of results. The stock is now down over 40% over the last six months. Is there any chance that CEO Roisin Currie can turn this boat around?
Greggs needs to make sure looming employer national insurance contribution cost concerns don’t end up pushing prices beyond customer appetites. There was a huge reaction to January's decision to raise the cost of a sausage roll by 5p to £1.30, so the customer base is clearly tuned in to the inflationary environment and where they see Greggs in it.
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