What's happened
Greggs has reported a 7.2% rise in half-year sales to £1.1bn, driven by 34 net new stores and a shifted focus to higher-protein salads and iced beverages. Pre-tax profit has jumped about 20% to £76m as it expands formats and maintains price stability amid inflation; the chain is also trialling Greggs Express in petrol forecourts.
What's behind the headline?
Analysis
- Greggs is leveraging product innovation to align with health trends while preserving its value proposition. The blend of healthier items and indulgent options is designed to attract both health-conscious and occasional-treat customers.
- The expansion strategy, including non-traditional venues like petrol stations and supermarkets, appears aimed at widening catchments and reducing high-street concentration risk.
- Cost pressures remain a challenge (wages, energy), but inflation is easing, and ingredient costs are softening for some items, supporting margin retention.
- The emphasis on protein-rich salads and clearer nutritional labeling targets a shift in consumer preferences toward transparency and convenience.
- The shares rose after the update, signaling market approval of the strategy, though long-term margin sustainability will depend on inflation and wage dynamics.
How we got here
The figures cover the first half of 2026, with performance supported by new menu items such as iced matcha lattes and chicken rolls, expanded salads, and a frozen bake-at-home range in Tesco and Iceland. The company has 2,773 shops at end-June and expects 100–110 net new openings in 2026, including a pilot Greggs Express format.
Our analysis
Independent reports show sales topping £1.1bn for the six months to June 27, 2026, with 34 net new shops and a 20% jump in pre-tax profit to £76m. The Guardian and BBC corroborate the rise in sales and profit, highlighting menu diversification (iced matcha lattes, chicken roll) and the expansion across new formats. The Scotsman emphasizes the same drivers and notes market commentary about pricing and cost control.
Go deeper
- Will Greggs continue to open 100-110 net new shops in 2026?
- How will wage and energy volatility affect margins this year?
More on these topics
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Greggs - Bakery chain in the United Kingdom
Greggs plc is a British bakery and fast food chain. It specialises in 'on-the-go' savoury products such as baked goods, sausage rolls, sandwiches and sweet items including doughnuts and vanilla slices. It was founded, and is headquartered in, Newcastle upon Tyne, England. It is listed on the London Stock Exchange (LSE), and is a constituent of the FTSE 250 Index. Originally a high street chain, it has since entered the convenience and drive-through markets.
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Tesco - Retail company
Tesco plc, trading as Tesco, is a British multinational groceries and general merchandise retailer with headquarters in Welwyn Garden City, Hertfordshire, England, United Kingdom.
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United Kingdom - Country in Europe
The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom or Britain, is a sovereign country located off the northwestern coast of the European mainland.
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Middle East - Region
The Middle East is a transcontinental region that generally includes Western Asia, all of Egypt, Iran, and Turkey. Soviet Central Asia, Afghanistan, and Pakistan are generally excluded.
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Newcastle upon Tyne - City in Tyne and Wear, England, UK
Newcastle upon Tyne, or simply Newcastle ( new-KASS-əl, RP: NEW-kah-səl), is a city and metropolitan borough in Tyne and Wear, England. It is England's northernmost city, located on the River Tyne's northern bank opposite Gateshead to the south. It is the most populous settlement in the Tyneside conurbation and North East England. The metropolitan borough had an estimated population of 320,605 in 2024. Newcastle developed around a Roman settlement called Pons Aelius. The settlement became known as Monkchester before taking on the name of a castle built in 1080 by William the Conqueror's eldest son, Robert Curthose. It was one of the world's largest ship building and repair centres during the Industrial Revolution. Newcastle was historically part of the county of Northumberland, but governed as a county corporate after 1400. In 1974, Newcastle became part of the newly created metropolitan county of Tyne and Wear. The local authority is Newcastle City Council, which is a constituent member of the North East Combined Authority.