Greggs Boosts Profits with Healthy Menu Pivot and Store Expansion

Greggs (LON: GRG), one of the UK's leading food-on-the-go retailers, announced robust growth in its financial results for the first half of 2026. For the 26 weeks ended June 27, the company's total sales increased by 7.2% year-on-year, reaching £1.1 billion. Pre-tax profit surged by a notable 19.7% to £76 million. This performance is largely attributed to Greggs' focus on menu diversification and strategic new store openings.

Company management highlighted menu innovations and operational efficiency as key drivers behind these strong results. New products such as iced matcha lattes, an expanded range of protein-rich salads, and the new chicken roll launched in April, proved highly popular with consumers. These offerings align with evolving consumer trends and the growing interest in healthier food options. Like-for-like sales in company-managed shops rose by 2.1%, while franchised shop like-for-like sales increased by 1.3%.

Greggs also expanded its footprint by opening a net of 34 new shops in the first half, bringing the total number of outlets to 2,773. The company aims for 100 to 110 net new openings for the full year 2026. This expansion strategy has enabled Greggs to reach more customers and enhance its market share. CEO Roisin Currie stated that Greggs continues to outperform the market, consistently broadening and innovating its menu in line with changing tastes and trends.

These impressive financial results were achieved amidst a generally challenging food-to-go market. Greggs successfully increased its market share of visits by 0.3 percentage points to 8.7% in a market where overall visits declined by 1.9%. The company's stringent cost control and growth in its grocery business, including 'bake at home' products, also contributed positively to profitability. These results signal a significant turnaround for Greggs, especially after its sales and profits were negatively impacted by hot weather conditions last summer.

Analysts and market observers note Greggs' successful adaptation to dynamic consumer preferences through menu innovation and store expansion. The company's value-driven proposition and emphasis on freshly prepared items continue to attract customers, even in challenging economic environments. Looking ahead, the board's expectations for the full-year outcome remain unchanged, indicating confidence in the company's sustained performance and ongoing growth strategies.