Greggs has posted rising sales and a jump in profits following a period of strong cost discipline and growth in grocery channels.

Customer being served at Greggs store

Source: Greggs

Greggs’ ambition is to have at least 3,500 stores in the UK

The retailer saw sales increase 7.2% to £1,101.5m for the 26 weeks to June 27, 2026, while like-for-like sales in company-managed stores grew 2.1%. 

Operating profit jumped 22.9% to £86.5m and pre-tax profit grew 19.7% to £76.0m. Its profit guidance for the full year is unchanged. 

The retailer said the strong performance was assisted by lower-than-anticipated levels of cost inflation, strong cost control and periods of hot weather. Overall cost inflation in the first half was 2.2%, which it now expects to continue for its full-year, a reduction in its prior outlook. 

Incremental sales were driven by a strong performance within its grocery partnerships, with the growth in bake-at-home ranges in Tesco and Iceland credited as a key driver of total sales growth beyond like-for-like performance. 

App usage also improved during the period and is now part of 31% of transactions, up from 25.7%. 

Greggs opened 34 new stores in the first half, bringing its total estate to 2,773. It said it expected to close the year with 100-110 new net openings, as it moves toward its long-term ambition of at least 3,500 stores across the UK. 

To support the expansion, Greggs has invested in a new distribution centre in Derby, which will increase its capacity but operating costs will go up as a result, lowering operating profit in the second half of the year. 

Chief executive Roisin Currie said: “Greggs continued to outperform the market and has delivered an improved sales performance and strong cost control through the first half of 2026, resulting in profitable growth.

“We remain focused on opening shops in more catchments and introducing convenient ways for customers to pick up Greggs favourites, while broadening and innovating our menu in line with changing tastes and trends. We are making great progress in building the supply chain infrastructure that will support the significant growth opportunities that lie ahead. The board’s expectations for the full-year outcome are unchanged.”

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