It was not a tasty year for shareholders Greggs (LSE: GRG). The shock profit warning in the summer meant that Greggs has fallen – and it is not yet clear if there can still be more bad messages to come next time the company updates the market in the field of trade. This is scheduled for tomorrow (October 1).

Almost cut in half

Over the past year, the price of Greggs shares has dropped by 49%. So 1000 pounds in the baker’s actions 12 months ago would decrease to about 510 pounds. Ouch!

The five -year image is better, and Greggs will share by 26%during this period.

It is a reminder that in the long term Greggs worked decently. But the recent fall not only seriously damaged the price, but also ate investors.

The warning about profit was unexpected and the details were far from calming.

Quite at an early stage of summer, Greggs pinned a weaker than a hopped performance in infinite sultry weather.

But scorching summer days are not exactly modern – even if it seems in a few years! The Greggie should certainly be able to supply their stores in such a way that it can deal with how the weather pendulum affects what customers want to eat or drink.

It is understandable that the warning about profit has shocked the investor’s trust in the way of conducting the greatest pastries in the country.

Sweet smell of the occasion?

Greggs shares almost half the value within 12 months is apparently not great news for investors who bought it at the time.

The dividend performance of 4.3% is decent, but frigid comfort, taking into account the scale of the decrease in share prices.

In any case, if someone bought a year ago, the higher price of the shares would mean that their current performance would be only about 2.2%. When investing in the amount of 1000 GBP, it would be about 22 GBP per year.

Fortunately for me a year ago I didn’t buy Greggs. I liked the business because of the mighty brand, extensive chain of stores, mighty customer loyalty and a high level of regular purchases. But the price of the action discouraged me.

When he fell, I managed to put some Greggs actions in my wallet and plan to keep them in the long run. Currently trading in a profit for profit of 11, I think that the share still looks like a potential opportunity from a long -term perspective.

Some basics for nervousness

Still, it turns out.

Greggs has a proven business model and I think it has a lot to do. But the decrease in profits before taxation year -on -year in the first half worried the city.

Meanwhile, some elements on which Greggs built his success change around him. For example, many of his assets are still on high streets, and in many areas they still suffer from falling number of customers, potentially injuring sales.

I hope Greggs will be good and its proven business model can start delivering goods again. Time will tell.