Newcastle-based Greggs said its 2022 pre-tax profit rose 1.9% to £148.3 million as total sales rose 23% to £1.513 billion.
Total ordinary dividend per share will be 59p, up from 57p.
On current trading, Greggs said like-for-like sales in company-managed shops was up 18.8% in the first nine weeks of 2023.
Greggs reported a record 186 new shop openings in 2022 and 39 closures, growing the estate to 2,328 shops.
The firm continued to expand its presence in retail parks, in central London and in key transport hubs, with shops opening in Leicester Square, Liverpool Street Station and Birmingham and Liverpool airports.
Greggs said it is targeting 150 net openings in 2023 and sees a “clear opportunity for significantly more than 3,000 UK shops in time.”
Greggs also announced it has appointed Nigel Mills as an independent non-executive director with immediate effect.
Mills will become Greggs’ senior independent director following the AGM on May 17, 2023, when Sandra Turner steps down. Mills joins the audit, remuneration and nominations committees.
“Nigel had a distinguished executive career having been chief executive at Hoare Govett and chair of corporate broking at Citi Group, advising a wide range of companies including a significant number within the consumer sector,” said Greggs.
“He currently holds the senior independent director role at both John Wood Group PLC and at Persimmon plc, where he was also acting chair during 2018.”
Greggs CEO Roisin Currie said: “2022 has been a year of strong progress for Greggs, the result of committed efforts to deliver our strategic growth plan.
“The significant opportunities on which the plan is based will remain centre stage in the year ahead as we make Greggs more accessible to even more customers.
“Although consumer incomes remain under pressure, Greggs continues to offer exceptional value to people looking for great tasting, high-quality food and drink on-the-go.
“We have an exciting, ambitious plan for the years ahead and, by continuing to nurture what makes Greggs special, I believe we are extremely well-placed to realise the opportunity to become a significantly larger, multi-channel business.”