Bakery chain Greggs Plc reported a slowdown in sales on Wednesday, pinning the blame partly on a "heat-affected" July, but reiterating its outlook for the full year.
In the 13 weeks to 27 September, total sales were up 6.1%, down from 7% growth in the first half.
Meanwhile, company-managed shop like-for-like sales rose 1.5%, down from 2.6% growth in H1.
Greggs said that while unusually high temperatures persisted throughout July, holding back its performance during the month, trading improved in August and September in more stable conditions. Year-to-date total sales are up 6.7%, with LFL sales 2.2% higher, it said.
The company - famous for its sausage rolls - now expects around 120 net new shop openings for the year as a whole, slightly lower than its previous estimate, "reflecting the timing of opportunities".
"Greggs continues to make progress despite challenging market conditions, evolving its offer further and making the brand more convenient for a wider range of customers through disciplined estate expansion," it said.
"Our two new distribution centres in Derby and Kettering are on track to open in 2026 and 2027 respectively and will support the next phase of this growth. Operational costs have been well managed and the outlook for cost inflation in 2025 is marginally improved. The board's expectation for the full year outcome is unchanged and we remain clear on the strategic opportunities that lie ahead."
Matt Britzman, senior equity analyst at Hargreaves Lansdown, said: "Even sausage rolls are sweating as Greggs feels the heat. Hot weather and a softer consumer backdrop meant third-quarter growth slowed, raising question marks around expectations for the full year. Management isn't waving the white flag just yet, with the full-year outlook unchanged. But this quarter was about weathering the bumps rather than breaking records - a far cry from the Greggs of 2024.
"Longer term, the ingredients for growth are still in the mix. Expanding into supermarkets and online through Bake at Home, plus major supply chain upgrades, should set the stage for the next leg from 2026. Cost pressures are easing slightly, which helps, but today's update is a reminder that even a category leader isn't immune to short-term headwinds. For investors, the steady ship has been rocked this year, and the outlook has shifted to a slow rise rather than a rapid bake - but there is still an attractive recipe lurking beneath the surface."