British bakery chain Greggs reported a 20% surge in pre-tax profit to £76.0 million for the 26 weeks ending June 2026.
The financial boost was driven by a menu refresh that included iced matcha lattes, high-protein salads, and strategic store network expansion across the United Kingdom.
Total sales reached £1.1 billion during the first six months, representing a 7.2% increase compared to the same period in 2025.
Existing store sales grew by 2.1%, assisted by minor price adjustments enacted earlier in the year.
Strong sales performance in iced drinks and fresh chicken items sustained growth despite multiple heatwaves.
Store Expansion and Delivery Growth
The Newcastle-based company opened 65 new outlets while closing 31, bringing its total location count to 2,773 shops.
Executive strategy focused on opening branches away from traditional High Streets, favoring travel hubs, roadside locations, petrol forecourts, and retail parks.
Delivery services accounted for 6.9% of overall revenue, with delivery orders averaging three times the value of in-store transactions.
Company leadership reaffirmed plans to expand the long-term store network to at least 3,500 locations while introducing smaller formats and self-service units across the country.
Following the announcement, Greggs shares increased by more than 10% in early trading to 1,862p.
Menu Innovation and Pricing Strategy
"Broadening and innovating our menu in line with changing tastes and trends," said Roisin Currie, chief executive of Greggs.
Management confirmed it does not plan additional menu price increases during the second half of 2026, citing stabilizing commodity costs for coffee and cocoa alongside reduced cost inflation projections of 2%.
"Our prices are in a good place and we will now be working hard to protect the consumer and making sure that we can offer that value throughout the rest of the year," said Currie.
The company hedged 90% of its energy expenses for the current year to buffer operations against volatile energy markets while expanding retail partnerships for its bake-at-home product range.
"We have gone out... to demonstrate that this is not the case," said Currie.
Operational focus will remain centered on high-traffic areas to minimize internal sales competition among proximate bakeries. "There remains significant headroom for further growth," she added.
The business expects full-year underlying pre-tax profits to align with 2025 levels of £172 million, balancing supply chain investments against current consumer market conditions.
"These launches reflect our focus on relevance and innovation, while staying true to the familiar quality that customers expect from Greggs," said Currie.
"We have become more resilient as we have seen hot weather become more of a normality at certain points in the UK."
Market analysts highlighted that consumer preference for lower-cost takeaway items has buffered the retail chain against broader financial pressures.
"There's still healthy appetite for affordable treats," said Susannah Streeter, chief investment strategist at Wealth Club.
"It's also proving nimble at keeping pace with the latest food trends, showing it can compete with far more premium cafes."
"The iced matcha latte has emerged as one of the hits of its latest menu revamp, demonstrating that the bakery chain can blend social media-inspired tastes with its trademark value offering," Streeter added.
Advisory experts noted that cost management strategies and menu adjustments remain central to sustaining customer traffic.
"Weight-loss drugs, low spending and confidence, and rising employment and business costs," said Julie Palmer, managing partner at BTG Consulting.
"After a summer of sport, beer gardens and heatwaves, Greggs will be banking on autumn and winter seeing demand for its hot pastries and convenient on-the-go products returning."
"Keeping prices low and continuing to expand product ranges to meet changing food trends will be key to luring people back into its vast number of stores to achieve this," Palmer added.
Financial sector observers added that low inflation and location choices supported the overall earnings outcome.
"More pedestrian," said Duncan Ferris, analyst at Freetrade.
"But Greggs says performance of new stores was particularly strong, and that the majority of new openings were in locations more than a mile away from other branches.
This may alleviate fears the bakery chain's expansion is merely leavings its own stores competing with each other."
The group is currently targeting between 100 and 110 net new shop openings by the conclusion of 2026.
