Today at over 2,000p per share, it has certainly improved from the September 2020 low, when it was less than 1,200p per share.

The company appears to be in a relatively stable position at the moment with regards to cash, and has even paid off the loan previously given to it by the government to help with Covid-19 business disruption.

A recent partnership with Just Eat means that customers can have their baked goods delivered, and in turn this has helped make up for some of the lost business due a lack of footfall in the company’s stores.

Sales have been steadily improving since the initial lockdown of March 2020, and the fourth quarter trading update mentions that like-for-like sales in company-managed stores in the fourth quarter to early January this year were an average of 81.1% of equivalent 2019 levels.

However I note in the same report that the CEO Roger Whiteside also talks about how he thinks that it would be at least 2022 before company profits return to pre-Covid levels.

Even though the pandemic and subsequent lockdowns have been painful, Greggs has still been opening new stores and has plans to continue to do so during 2021.

I like the fact that the company seems adaptable and proactive, such as offering the delivery service and the introduction of new menu items. I remember seeing the news when customers were queuing around the block for the new vegan steak bake!

Food for thought

Continuing to increase the number of outlets does show commitment to future growth. However, it is happening at a time of great uncertainty in both the high street and the wider economy in general.

Also, given that most of Greggs’ bakery stores seem to be located on the high street or in retail parks, its target customers would appear to be those who are out shopping or who are at work.

I do wonder if the number of customers could start to decline in the long run if the work from home model were to continue, and if shoppers were to move to more online purchases, rather than hitting the high street.

Once the lockdown is lifted and shops and restaurants reopen, it is difficult to know if the number of takeaway delivery orders will continue at the current rate. This is something for me to consider given this has helped to maintain sales for the business so far.

Even though the share price has been climbing for this growth stock, I think at the moment there is just too much uncertainty for me to invest and therefore I will be happy to sit this one out and watch what happens from the sidelines with my savoury treat in hand.

More reading

Tim Charles has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

There have been recent job losses of around 1,500 in the company (although far less than the 6,000 initially mentioned) and the dividend was suspended last year.

Investing in any hospitality business at the moment comes with some risk. Any further lockdown and restrictions in movement would be terrible for an already massively disrupted industry.

It is not just the Premier Inn hotel chain that has been affected by loss of business, as Whitbread also operates a number of restaurants with brands such as Beefeater and Brewers Fayre, all of which have suffered with periods of closure and loss of custom due to the pandemic.

Despite these negative points, I do believe that the business appears to be in a better position than many of the other leisure and hospitality stocks.

There are plans for future growth, with the decision to build more Premier Inn hotels in a number of locations across the United Kingdom. The company also have an increasing number of hotels opening in Germany.

Once lockdown restrictions are eventually lifted and movement allowed, it is possible that there could be pent-up demand from those who wish to stay overnight in hotels and use restaurants.

There is also the possibility of an increase in staycations for 2021 if some international restrictions on travel were to remain in place. This could be a boost for Whitbread as most of its businesses are located in the United Kingdom.

It is also interesting that the company has recently announced that it is issuing green bonds, money from which will be used to support sustainable projects including the introduction of electric vehicle charge points. Therefore the management do seem to be forward thinking.

Whitbread has also recently taken measures to try and shore up finances, including negotiating an extension of revolving credit facilities and confirmation that it will repay forthcoming maturing debts of approximately £284 million.

Even if demand increases for this year, the reality is that it may take some time to return to pre-pandemic levels for hotel and restaurant bookings. Therefore I would need to look at this stock as a longer-term investment.

The current share price, which at the time of writing is around 3,200p per share, is still below the price of over 4,000p per share back in February 2020, just before the pandemic took hold in the UK.

I certainly feel more bullish with Whitbread than some of the other leisure and hospitality stocks such as Cineworld Group.

I would therefore consider adding Whitbread to my own portfolio and hold for longer-term growth.

More reading

Tim Charles has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

The Vietnamese economy has been growing rapidly over the last few years, and a number of multinational organisations have recently established manufacturing operations there. According to a recent CNBC news article, Vietnam is likely to be Asia’s top performing economy of 2020 – beating even China!

The country also has trading relations with both China and the West, and talk recently has been of trying to increase these ties, especially with the West. The Vietnamese government are said to be targeting annual GDP growth of at least 6.5% per year for the next few years.

Government elections have recently been held, and the existing Communist Party leader has been re-elected – a man who appears to have a more global outlook in terms of trade. Therefore I hope this will help to continue to bring stability to the country.

One way of getting in on any future potential growth could be by investing in the close-ended fund of Vietnam Enterprise Investments Limited (LSE:VEIL) by Dragon Capital. This fund invests in a number of both listed and pre-IPO companies in Vietnam, with sectors including banks and real estate.

I believe it offers a chance to invest in an emerging market with a lot of potential. I am not the only one who thinks this way: some of the significant shareholders in the fund include the Bill and Melinda Gates Foundation and the City of London Investment Management Company, along with a number of other trusts and funds.

It has recently been trading with a discount to the net asset value, while the fund can also be held as part of a Stocks and Shares ISA.

What are the potential risks and downsides?

Investing in emerging markets can sometimes be a bit of a roller-coaster, and although the Vietnamese government is more stable than some in the region, things can sometimes change. However, the potential rewards could be great if the recent economic growth were to continue.

I am also not thrilled about the 2% management fee that is charged, which is fairly high compared to other trusts and funds. However, this may be in part a result of not having a great deal of competition with similar funds (at least those available on the FTSE) that are invested wholly in the region.

Taking all into consideration, I think that if one is able to accept a certain amount of risk versus potential reward that exists with emerging markets, then I do believe this fund makes for a good addition as a small part of my diverse portfolio.

More reading

Tim Charles owns shares in Vietnam Enterprise Investments Limited. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.