Greggs plots further growth as iced drinks and salads boost summer sales

Releasing its latest interim results, the bakery and snacks chain revealed that total sales topped £1.1 billion for the 26 weeks to June 27, up 7.2 per cent on the same period a year ago. This was largely driven by the opening of 34 stores on a net basis.

Stripping out the impact of the new outlets, sales at company-managed shops were 2.1 per cent higher compared with last year, and 1.3 per cent higher at franchised shops.

Pre-tax profits jumped by a fifth to £76 million for the half-year period, which Greggs said was partly due to launching its “bake at home” frozen range in Tesco, adding to an existing partnership with Iceland Foods.

The Newcastle-headquartered group said that innovating its menu to follow consumer food trends helped attract new customers, including products such as iced matcha lattes and the chicken roll launched in April as an alternative to the sausage and vegan rolls. It has also been expanding its range of salads with new and reformulated recipes designed to have more protein, and ensuring labelling has clearer nutritional information, in a bid to tap into a growing cohort of health-conscious consumers.

Cold and healthier items on the menu have also helped the chain avoid a drop in sales from people avoiding hot food during the recent heatwaves.

Chief executive Roisin Currie said: “You do see that when temperatures get above 30 degrees that people start to eat less. We’ve been much more resilient this year than previously because we learned some lessons.”

She said Greggs was focused on “keeping it exciting for customers” with new products like a blueberry matcha iced latte within the drinks range that was appealing particularly to younger consumers.

Customers have also been picking out products like fruit pots, yoghurts and wraps in the hot weather, as well as picnic food like packs of sausage rolls.

“But the customer also wants that indulgent treat every so often,” Currie added. “So we do still see that while health is very important, actually indulgence is also a trend that’s out there – customers want that sweet treat, not every day but when they want to treat themselves.”

The firm had 2,773 shops at the end of June and is expected to have opened 100 to 110 on a net basis throughout 2026, many of which are in new locations with no Greggs outlet within a mile. It is trialling a Greggs Express format which involves self-service units with a smaller range of food items and drinks located within petrol stations and travel locations.

Currie also stressed that the group had no further price rises planned after its breakfast, lunch and “big” deals went up in May.

“Our prices are in a good place and we will now be working hard to protect the consumer and making sure that we can offer that value throughout the rest of the year,” she added.

Adam Vettese, market analyst at etoro, said Greggs had served up a “tasty” first half, noting that the group’s value credentials were doing the heavy lifting amid a tough consumer climate.

“Customers are still queuing for sausage rolls and steak bakes, while grocery partnerships and new stores added an extra boost,” he said. “Cost control and an easy year-ago comparison helped the bottom line look especially solid.

“The bounce is welcome, but the shares remain a long way below the levels seen before their near halving in 2025, when slowing growth and higher costs triggered a sharp derating. For a brand that thrives when wallets tighten, this is reassuring rather than revolutionary. As long as the value offer keeps resonating, Greggs looks set to keep baking in the gains.”

Susannah Streeter, chief investment strategist at Wealth Club, said: “Greggs has put its batch of flaky sales behind it and baked up a strong set of results. New store openings, brisk grocery sales and careful cost control have helped lift profits by 20 per cent in the first-half, showing there’s still a healthy appetite for affordable treats even while many consumers have turned super-cautious.

“Greggs has continued to take a bigger slice of the food-to-go market, proving its value proposition is resonating as households look for cheaper lunch and breakfast options. It’s also proving nimble at keeping pace with the latest food trends, showing it can compete with far more premium cafés.

“There is a slight soggy bottom to the outlook, though. The company is warning that investment in expanding its supply chain will weigh on second-half profits unless consumer confidence improves.”

Keishia Quijano, producer at Edinburgh-based consultancy Label Sessions, added: “Greggs has delivered a solid first half in a market giving retailers very little help - albeit, against soft comparators. There is also some convincing to be done on whether the UK has hit ‘peak Greggs’, as previous updates have indicated.

“Some of that is due to menu innovation paying off. That said, Greggs is also one of the few UK retailers putting AI somewhere boring - stock monitoring and order consolidation, for example - rather than into customer-facing theatre.

“On top of that, around one-quarter of transactions at Greggs run through the loyalty proposition or the app, meaning the business holds first-party data on everyday purchase behaviour at a scale most grocers would envy.”

Greggs opens new Edinburgh outlet shop with discounted sausage rolls, steak bakes and sweet treats