Solid Q3 performance, albeit slowing from the H1 performance Greggs provided a Q3 trading update this morning in which it reported company managed LFL sales growth of +5% (H1: +7.4%) and total sales growth of +12.7% (H1: +13.7%). For the year-to-date, LFL sales are +6.5% with total sales +12.7%. Growth in Q3 was underpinned by menu development, extension into the evening daypart and new digital channels, while its new iced drinks range continues to perform well with availability in 800 shops today and a total of 1,000 shops expected to offer the range by year-end. In addition, the Group notes that September was the strongest month of the quarter pointing to a better exit rate into Q4. The Group has opened 86 net new shops in the year date with the company’s guidance of 140-160 net new shops for the FY unchanged. Cost inflation to be at lower end of range, PBT expectations unchanged Looking forward, the Group now expects cost inflation for 2024 to be towards the lower end of the 4-5% guidance range. In terms of PBT guidance, it continues to expect a FY outcome in-line with previous expectations. We currently forecast Group FY24 revenues of £2,048m (+13% yoy) driven by LFL sales growth of 7% (consensus: +6.5%) and 150 net new store openings. This, combined with 75bps gross margin improvement underpins our PBT estimate of £191m which is c.14% growth yoy and sits c.2.5% above VA consensus estimates. Goodbody view Greggs shares are +22% ytd and the stock now trades on a cal.25 P/E of 20.4x and EV/EBITDA of 9.1x. Overall, we consider this to be another solid update from the company and retain our positive stance on the stock given its attractive long-term growth potential from new store openings and LFL sales drivers (Gregg’s app and loyalty scheme, expansion into the evening daypart) and robust delivery to date. In terms of forecasts, we are unlikely to material changes our estimates, albeit will nudge LFLs lower offset by higher margins due to lower cost inflation.