Greggs shares are selling like hot cakes! Can it last?

Greggs shares have surged 35% over three months as the UK bakery chain rebounds from a slowdown tied to tougher consumer conditions. After like-for-like sales growth cooled to 5% in the third quarter from 7.4% in the first half, investor concerns pushed the stock down, with its P/E ratio previously reaching 24 and the trailing dividend yield falling to about 2%. The turnaround followed a trading update on 30 September: total third-quarter sales rose 7.7% and like-for-like growth at company-managed shops accelerated to 3.4% from 2.1%. Greggs also raised its full-year profit outlook, and said it plans up to 110 net new shops this year.