Newcastle-based Greggs said its total sales in the 19 weeks to May 9, 2026, rose 7.5% to £800 million as like-for-like (LFL) sales in company-managed shops grew by 2.5%.
Shares of the Newcastle firm rose as much as 5%.
Greggs also said that it will soon open its first shop in an airport outside the UK, working in partnership with Lagardère Travel Retail at Tenerife South Airport.
“Tenerife South is a destination for millions of UK and international passengers each year and represents an excellent opportunity to test our offering in an international travel hub,” said Greggs.
In a trading update, the Newcastle company said: “The proactive management of our shop estate continues and during the period we opened 41 new shops, which included 17 with our franchise partners.
“In the year to date we have closed 21 shops (including 11 relocations), resulting in a total of 2,759 shops trading as at 9 May (comprising 2,141 company-managed shops and 618 franchised units).
“We continue to target around 120 net openings for the full year …
“The testing and operational readiness preparations for our new frozen product manufacturing and logistics facility in Derby are progressing in line with plan, and the internal fit-out of our new National Distribution Centre in Kettering continues at pace. The sites will be operational in 2026 and 2027 respectively, in line with our planned timescales.”
In its outlook, Greggs said: “LFL sales performance has improved against what remains a challenging market, with good operational cost control supporting encouraging year-on-year profit progress in the year to date.
“There has been no change to the overall outlook for cost inflation, which we expect to be around 3% on a LFL basis. Our forward buying of key commodities continues to provide protection against increased inflation in the near term; we have forward purchase agreements in place representing circa five months of cover for our food and packaging needs and 85% of our 2026 energy and fuel requirements are fixed in price.
“In addition, circa 50% of our 2027 energy and fuel requirements are fixed. We are monitoring the situation in the Middle East and should the conflict continue and become prolonged we, like all food retailers, will likely see higher overall cost inflation through the end of 2026 and into 2027.
“In this uncertain environment, our value offer remains highly attractive as customers look to make their money go further. We expect to deliver good first half profit progress, with the operational costs associated with our new Derby site primarily impacting the second half of 2026, as previously guided. The Board’s expectations for the full year outcome remain unchanged.”
REACTION:
Victoria Scholar, Head of Investment, interactive investor: “Greggs delivered a positive trading update with like-for-like sales in the past 10 weeks up 3.3%, and up 2.5% in the first 19 weeks of the year. Greggs also kept its full-year outlook unchanged. The bakery chain is opening its first shop in an airport outside the UK in Tenerife South and said it is targeting around 120 net openings for the full year.
“Greggs has managed to deliver a better-than-expected performance so far this year thanks to strong demand for new products like its Chicken roll and its Matcha drink alongside continued demand for its classics like the sausage and vegan roll. It has also achieved positive results from its partnerships with grocery retailers such as its tie-up with Tesco to expand its ‘Bake at Home’ range.
“Greggs has been a heavily shorted company in the UK with hedge funds betting against the FTSE 250 baker amid concerns about its UK market saturation and the impact of GLP weight loss drugs on demand. However Greggs has been quick to respond, expanding its offering by introducing healthier salad options to widen its lunchtime choices and broaden its appeal towards the more calorie conscious consumer.”