Greggs says sales growth picks up despite 'challenging market'

Greggs PLC on Tuesday said it has kicked off the year with a sales rise, including a pick-up in more recent weeks, and the baker left its annual view unchanged.

Greggs shares rose 5.1% to 1,600.00 pence each in London on Tuesday morning.

The Newcastle upon Tyne, England-based firm said total sales in the first 19 weeks of 2026 rose 7.5% on-year to £800 million from £744 million.

Sales rose 2.5% on a like-for-like basis, including 3.3% growth in the most recent 10 weeks alone.

‘Partnerships with franchisees and grocery retailers are progressing well and contributing to the growth in overall sales. We have made encouraging profit progress in the year to date, partly reflecting a weak comparator period but also good operational cost control,’ Greggs said.

Greggs said 2,759 shops are now trading. During the year-to-date, there were 41 gross new shop openings and 20 net openings.

Looking ahead, it 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.’

Greggs said expectations for the full year are unchanged.

Copyright 2026 Alliance News Ltd. All Rights Reserved.