Recent acceleration in evening daypart sales is reassuring – we estimate these were up >50% YoY in H1 FY23. Thus, we believe the Greggs proposition and offer is proving to be increasingly capable of competing against more established evening daypart operators. With evening daypart trading seemingly benefitting all parts of afternoon and evening trading, we think marginal gross profits (and revenues) are likely to far exceed marginal operating costs when store opening hours are extended. Evening daypart trading could drive contribution up by 40% to 60%, per store (for company-managed stores at maturity), we estimate – assuming varying levels of post-3pm sales productivity. As such, a successful roll-out across both existing and new stores could theoretically drive EBIT as high as £294m to £328m by FY26 – giving management plenty of excess margin to reinvest. The acceleration of Greggs’ App participation to 10.6% (LY: 5.2%) should drive purchase frequency while also driving click & collect participation – leading to AOV upside and improving customer economics. We estimate that App customers who engage in Greggs Rewards could be 3x more valuable than walk-in customers who forego using the Greggs loyalty scheme. Runway for growth looks secure, with few signs of cannibalisation or teething issues since management accelerated the pace of store openings. New stores continue to be ‘return enhancing’ for the overall group. Management therefore remains confident in its store opening pipeline and believes capacity levels can be increased without creating significant erosion of return on capital. Forecasts & valuation well underpinned, with current trading momentum showing few signs of slowing and the cost outlook improving. There may even be potential for upgrades later in the year if trading holds up and/or the cost outlook further improves. Given the potential for upgrades in both near and outer years we believe our target price of 4000p is well supported, given valuations achieved by other QSR international operators.