Greggs mentioned its comparable gross sales rose 3.3% within the final 10 weeks as its new menu objects proved successful with prospects, sending shares of Britain’s largest quick meals chain up over 6%, regardless of the chance of rising prices from the Iran battle.
Greggs, recognized for its sausage rolls and candy treats, mentioned its new hen roll, launched in April, had shortly turn into a buyer favorite, whereas expanded salad choices comparable to hen caesar and protein-rich choices appealed to extra health-conscious diners.
That helped like-for-like gross sales in company-managed outlets rise 2.5% within the first 19 weeks of 2026, markedly enhancing to three.3% in the newest 10 weeks, the corporate mentioned.
The strong efficiency comes as British retail gross sales have been squeezed by the financial fallout of the Center East battle, which has fuelled greater power and residing prices, including to inflation worries and curbing discretionary spending.
RBC Europe Restricted analyst Ross Broadfoot known as the outcomes encouraging, noting the enhancing quantity pattern was notably constructive given some might have anticipated worse given the present local weather.
Greggs warned that extended Center East tensions might push value inflation past its present 3% forecast by late 2026 and into 2027, though it has hedged about 5 months of meals prices and 85% of this 12 months’s power wants.
About half of its 2027 power and gasoline necessities are additionally mounted, the corporate mentioned.
Greggs reiterated that prices from its new manufacturing website in Derby, central England, will primarily hit second-half earnings, and nonetheless held to its full‑12 months forecast.
What The Analyst Mentioned
Dan Coatsworth, head of markets at AJ Bell, acknowledged, “It’s been some time since Greggs might stand tall and show to the market that enterprise hadn’t gone stale.
“Whereas not sturdy sufficient to warrant upgrading full-year steerage, Greggs’ newest buying and selling replace remains to be reassuring, notably after a protracted interval of dragging its heels.
Shore Capital described that efficiency as ‘sound’, with same-store volumes displaying indicators of stabilisation within the first 19 weeks of 2026.
Commenting on the UK baker’s plan to open a retailer in Tenerife South Airport, Coatsworth, mentioned, “That appears like a perfect place to dip its toe into new waters, with hungry travellers not fussy about what they purchase in an airport, and holidaying Brits glad for some dwelling comforts.”
He added that Greggs’ earlier overseas efforts didn’t final lengthy when it tried to promote buns in Belgium in 2003.
Evaluating it to an try as a overseas retailer establishing store in Newcastle to promote sausage rolls, he mentioned that locals all the time favor their homegrown providing and that “even the straightforward process of making a candy bun was going to be an uphill battle for Greggs in a overseas land.”
“Rolling out websites in overseas transport hubs appears best – the massive unknown is whether or not that market is already effectively served or whether or not there may be any house for it to occupy. There’ll already be loads of operators entrenched in these markets,” he concluded.
Information by Reuters, extra reporting by ESM.
