Greggs (LSE:GRG) reported strong interim results for the 26 weeks ended 27 June 2026, with total sales increasing 7.2% year over year to £1.10 billion and operating profit rising almost 23% to £86.5 million. The food-to-go retailer also increased its share of customer visits to 8.7%, despite an overall decline in the wider food-to-go market, demonstrating the continued appeal of its value-focused offering during a challenging period for consumer spending.
The company’s growth was supported by higher like-for-like sales across both company-operated and franchised stores, continued estate expansion and increasing sales through grocery retail partners including Tesco and Iceland. During the first half, Greggs opened a net 34 new shops, introduced its smaller “bitesize Greggs” store format, expanded trials of “Greggs Express” self-service locations and launched its first international travel hub outlet in Tenerife. The company’s digital loyalty programme also continued to strengthen customer engagement and repeat visits.
Greggs is continuing to invest in its long-term growth strategy through major supply chain and logistics projects, including new national distribution centres in Derby and Kettering that are designed to support an estate of up to 3,500 UK stores. At the same time, management is pursuing operational efficiencies, reducing planned capital expenditure for 2026 to approximately £180 million while maintaining a target return on capital employed of around 20%, creating the potential for additional shareholder returns over time.
Product innovation also remains a key growth driver. During the period, Greggs expanded its menu with new offerings including the Chicken Roll, additional hot food and pizza options, refreshed salad selections and a wider drinks range featuring iced beverages and Matcha. These initiatives are intended to strengthen the brand’s position as a leading destination for convenient food-to-go while supporting like-for-like sales growth and reinforcing its reputation for affordable, high-quality products.
Greggs’ outlook continues to be supported by a resilient operating model and an attractive valuation, although management noted softer earnings quality during 2025, including pressure on margins, earnings per share and free cash flow, alongside gradually increasing leverage. Technical indicators remain generally positive despite mixed momentum, while the company expects sales growth to continue even as supply chain investment and inflationary pressures are likely to limit profit expansion in the near term.
About Greggs plc
Greggs plc is one of the UK’s largest food-to-go retailers, offering a wide range of freshly prepared bakery products, hot meals, snacks and beverages through a nationwide network of company-owned and franchised stores. In addition to its traditional retail estate, the company has expanded its presence through supermarket partnerships and new store formats designed to improve convenience and accessibility.
The business focuses on providing affordable, ready-to-eat food throughout the day, serving millions of customers with products ranging from baked goods and sandwiches to pizzas, salads and hot drinks. Continued investment in digital services, menu innovation and supply chain infrastructure supports Greggs’ strategy of expanding its market share while delivering long-term sustainable growth.
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