Any holder of Greggs (LSE: GRG) shares will possible have loved their efficiency in 2024 to date. I do know I’ve!

And but this has been one of many shares I’ve been promoting from my Shares and Shares ISA in August.

What offers?

Sensible firm

It’s definitely not as a result of I’ve taken a sudden disliking to the food-to-go retailer. It nonetheless bears most of the ‘quality’ hallmarks I search for. These embrace a monitor file of attaining constantly excessive returns on the cash it places to work within the enterprise (or what it will get out from what it places in).

I additionally love the truth that Greggs shops are so exhausting to keep away from lately. Along with reaching virtually each excessive road, retail park and journey hub within the land, the corporate’s low-ticket treats are simply the form of factor customers need throughout a cost-of-living disaster.

Contemporary proof of this may be present in final month’s interim outcomes.

In July, the corporate unveiled a 14% rise in complete gross sales for the primary half of the yr. That’s virtually a billion kilos hitting the tills. Revenue was additionally up a bit over 16% at £74m.

Market-beater

These numbers despatched the inventory increased and rightly so, for my part. On the time of writing, it’s up 19% year-to-date and shutting in on the file excessive it hit on the finish of 2021.

OK, this latest efficiency is unlikely to have Nvidia holders sweating that they’ve backed the incorrect horse. Nevertheless it’s virtually 3 times the return made by the FTSE 250 index over the identical interval.

Shareholders have obtained passive revenue too. In Could, a 46p per share last dividend and a 40p per share particular dividend hit my account. Add these to the payouts and capital positive aspects I’ve collected pre-2024 and I’ve a tidy sum of cash.

So, what’s the issue?

The problem I’ve is the valuation.

Greggs shares now change palms for 23 instances forecast earnings. That’s not eye-wateringly extreme in comparison with the common US tech titan. Nevertheless it’s fairly wealthy for a sausage roll-seller.

Look, I feel this firm undoubtedly deserves to commerce at a premium to different UK shares. However that quantity implies it’d have to beat and never simply meet analyst expectations to maintain the momentum going.

Maybe it can. However administration has made no change to full-year steering, suggesting the price is now firmly up thus far with occasions (after which some).

Leaping the gun

It goes with out saying that the inventory might hold rising in price and I’ll finish up with egg on my face for promoting too quickly.

Ought to this be the case, I gained’t be utterly gutted: I nonetheless personal Greggs shares. I simply don’t personal as many as I used to. And if there’s a market correction or crash for no matter cause, I’ll definitely be trying down the again of the couch for money to purchase again the inventory I bought if I can get it at a decrease price.

This may show to be wishful considering. Then once more, the corporate virtually halved in worth within the 9 months between January and September 2022. Even the very best shares often go on sale.

For now, I’ll simply busy myself with deciding the place to take a position my revenue.