What's happened
Greggs reports a 7.2% rise in first-half sales to £1.1bn and a 20% jump in pre-tax profit to £76m, driven by a broadened menu, including iced matcha lattes and higher-protein salads, plus new stores and a 'Bake at Home' range.
What's behind the headline?
Market resilience under changing tastes
- Greggs has pivoted toward health-conscious and trend-driven offerings (iced matcha lattes, higher-protein salads) while maintaining value messaging. This aligns with a broader UK food-to-go shift toward convenient, lower-calorie options.
- The rise in sales despite heatwaves indicates demand for accessible, indulgent options remains, particularly as the brand expands into gas stations and travel hubs with Greggs Express.
- Profitability is supported by cost controls and channel diversification (Tesco bake-at-home range, Iceland and grocery partnerships). The tension remains around wage costs and global inflation, which could shape pricing strategy later in 2026.
How we got here
The interims show Greggs navigating hot weather and shifting consumer tastes by leaning into healthier options and convenience formats. The company has opened 34 stores net this year, expanding to 2,773 outlets, with plans to open 100-110 net in 2026. Price changes have been avoided this year to protect consumers.
Our analysis
BBC Business: Emer Moreau reports on sales and store expansion. The Guardian notes the impact of heatwaves on consumer choices and the response through new drinks and salads. The Scotsman and Independent provide corroborating figures on revenue, stores, and profitability, with emphasis on product innovation and cost management.
Go deeper
- Will Greggs’ price stance hold if inflation rises again?
- How will Greggs balance growth with store cannibalisation risks as it expands to new catchments?
- Which new products are most likely to sustain growth through winter?
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.