Profit from this bargain baker

Nov 17, 2009, 10:47

Tim Bennett

Posted byTim Bennett

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Pop into Pret a Manger for your lunch and you can easily spend the best part of £10 on a sandwich and a few extras. But as Saltnam Sangera points out in the Times, head for Greggs (LSE:GRG) instead and you can walk out with a sandwich, bottle of water and a bag of Walkers crisps for just £1.99. That, he notes is "preposterously cheap".

Greggs does well because in a recession it "has the wherewithal to sell proper crisps instead of posh hand baked parsnip varieties". Plus he notes "there is something fantastically blokeish about the brand name Greggs".

But I think Greggs isn't just a good bet for hungry workers looking for a cheap lunch. On a p/e of 14 and a yield of 3.5% it looks like a pretty tasty bet for investors too.

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