Greggs shares jump on stronger sales growth
Shares in Greggs jumped more than 6% on Tuesday after the company reported stronger sales growth, driven by the popularity of new menu launches despite growing concerns over inflation and Middle East-related cost pressures.
The bakery and fast-food retailer, famous for its sausage rolls and sweet snacks, said like-for-like sales at company-operated stores rose 2.5% during the first 19 weeks of 2026. Growth accelerated to 3.3% over the latest 10-week period as customers responded positively to recently introduced products.
Among the standout performers was Greggs’ new chicken roll, launched in April, which the company said quickly became a customer favourite. Expanded healthier offerings, including chicken caesar salads and high-protein meal options, also helped attract more health-conscious consumers.
The stronger trading update comes at a time when UK retailers are facing pressure from rising living costs linked to ongoing tensions in the Middle East. Higher energy prices and inflation concerns have continued to weigh on consumer spending across Britain.
RBC Europe analyst Ross Broadfoot described the results as encouraging, highlighting the improving sales momentum despite difficult economic conditions.
Greggs cautioned, however, that continued instability in the Middle East could increase cost inflation beyond its current 3% forecast into late 2026 and 2027. To limit the impact, the company said it has hedged roughly five months of food costs and secured 85% of its energy needs for this year.
The retailer also noted that around half of its energy and fuel requirements for 2027 have already been fixed.
Greggs maintained its full-year outlook and reiterated that expenses linked to its new manufacturing facility in Derby are expected to affect earnings mainly in the second half of the year.
