The saying goes, ‘Hindsight is a wonderful thing.’ Effectively, in terms of Greggs (LSE: GRG) shares, I want I had purchased some shares sooner!

Let’s break down whether or not or not the sausage-roll supremo continues to be top-of-the-line shares for me to purchase.

Gravy prepare retains going!

The Greggs progress story from a share price, earnings, presence, and returns view is a unbelievable one. It’s one of many causes I’m a bit gutted that I didn’t be a part of the celebration earlier. Nevertheless, I nonetheless put loads of cash of their until as I can’t resist a candy deal with or baked delight from one in every of their shops, which I can’t appear to get away from irrespective of the place I’m going.

Latest developments embody the Greggs share price persevering with its spectacular ascent, in addition to wonderful buying and selling information.

The shares are up 31% over a 12-month interval from 2,365p at the moment final 12 months, to present ranges of three,114p.

Interim outcomes launched on the finish of July revealed a formidable 14% rise in complete gross sales for the enterprise. For context, this equates to £1bn hitting the tills. I received’t touch upon how a lot cash I contributed right here via my private candy tooth! Moreover, revenue rose by 16% in comparison with the earlier interval final 12 months.

The current and the long run

Let’s dig into some fundamentals at the moment to assist me reply my titular query. I’ll admit the present valuation is a tad excessive for my liking. The shares commerce on a price-to-earnings ratio of near 23. Is progress already priced in right here? Might earnings take successful and dent investor urge for food? I’ll regulate this. Nevertheless, I’m additionally of the idea that typically you have to pay a premium for the very best shares on the market.

From a returns perspective, a dividend yield of three.34% is engaging, however nothing to jot down residence about. This might develop, in keeping with the way in which the enterprise has. Nevertheless, I do perceive that dividends are by no means assured.

Greggs doesn’t appear to be it’s resting on its laurels with progress firmly on the corporate’s agenda. That is proven by strategic partnerships with supply giants together with UberEats and Simply Eat to succeed in one other market. Moreover, it continues to focus on key concessions equivalent to journey hubs like rail stations and airports. Plus, it has prolonged opening hours to spice up gross sales and earnings.

Dangers and my verdict

I’ve two essential points. The current cost-of-living disaster has shone a highlight on the necessity for customers to make their budgets stretch additional. Slicing down on candy treats might damage Greggs’ earnings and returns if the present volatility continues long run. Persevering with with the development of financial turbulence, wage inflation might imply a price rise, which might hamper the agency’s aggressive benefit too. I’ll regulate each points shifting ahead.

Personally, I reckon Greggs is a superb funding and there’s loads of progress forward. It’s definitely top-of-the-line shares to purchase on the FTSE 250 index, for my part.

I’ll be watching with curiosity to see if I can acquire a greater entry level to snap up some shares after I subsequent have some free funds.