Greggs has reported that sales for the July-to-September period were stronger than expected as daily deals continued to bring in customers.
The bakery chain’s like-for-like sales were up by 4.9% during the quarter compared to the previous year.
Greggs said it would continue to benefit from "low cost pressures and a stronger consumer environment” but said that wage pressures could drive costs up next year.
Roger Whiteside, Greggs’ chief executive said that although the chain already pays staff more than the national minimum wage, rising labour costs would lead to “longer-term inflationary pressure".
He said the company would "look for cost efficiencies to offset" any rising costs, but added that labour costs "held no fear for us".
Greggs’ shares rose by 5% in early trading following the announcement.
Greggs has opened 65 stores and closed 47 this year, as well as refitting 158 stores. The company now has 1,668 outlets.
"We have the high street pretty well covered," said Roger Whiteside, so most new openings would be in other areas, such as garage forecourts and motorway services.
