Greggs reports 7.2% sales growth, driven by matcha lattes and store expansion

Greggs reported 7.2% sales growth to £1.1 billion and 20% profit growth in the first half of 2026, driven by 34 new store openings and successful menu innovations including iced matcha lattes and high-protein salads. The bakery chain, the UK's largest fast-food operator, said it was adapting to UK heatwaves and changing consumer tastes while maintaining prices.

Quick Facts

Reported 7.2% sales increase to £1.1 billion for first half of 2026
Achieved 20% pre-tax profit increase to £76 million
Opened 34 net new stores, bringing total to 2,773
Launched iced matcha lattes targeting younger customers
Introduced new high-protein salad range in May

Greggs, the UK's largest fast-food chain, reported a 7.2% rise in total sales to £1.1 billion for the first half of 2026, with pre-tax profit climbing 20% year-on-year to £76 million. The growth was driven by the opening of 34 net new stores, bringing the total to 2,773 outlets, and strong performance from newly launched products including iced matcha lattes, high-protein salads, and a new chicken roll introduced in April. Existing store sales grew 2.1%, supported by price increases implemented in May on breakfast, lunch, and "big" deals.

Chief executive Roisin Currie attributed the results to cost control and menu innovation targeting health-conscious consumers and younger customers. More than half of the new store openings were located in areas previously without a Greggs outlet within a mile, with many in non-traditional locations such as petrol forecourts, supermarkets, hospitals, and university campuses. The company said it was monitoring customer behaviour to avoid cannibalising existing store sales.

Greggs' performance marks a reversal from summer 2025, when hot weather reduced demand for hot pastries, prompting questions about whether the chain had reached "peak Greggs." The introduction of iced drinks and expanded salad ranges has helped the company adapt to increasingly common UK heatwaves. Chief executive Currie noted that cost inflation expectations had eased to 2% from 3%, and the company had hedged 90% of energy costs for 2026 and 50% for 2027.

Currie previously highlighted that the rise of weight-loss drugs has led some customers to seek smaller portions, though the results suggest menu diversification has offset any such headwinds. The company announced no further price rises were planned for the remainder of 2026, stating "our prices are in a good place." Greggs is targeting 100 to 110 net new stores for the full year 2026 and trialling new formats including a "bitesize" option and self-service "Greggs Express" model, with potential store numbers reaching 3,500 long-term. Full-year underlying pre-tax profit expectations remain unchanged at a similar level to 2025's £172 million, though the company flagged that investment in new stores will weigh on second-half profitability.

Topics

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#Greggs #sales growth #profit #matcha lattes #store expansion #retail #fast food #consumer trends #UK food #menu innovation

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Why This Matters

Greggs' 7.2% sales growth and 20% profit increase to £76 million demonstrate recovery from 2025 heat-driven demand weakness and validate menu diversification strategy targeting younger and health-conscious consumers. The chain's expansion to 2,773 outlets—including non-traditional locations (petrol stations, supermarkets, hospitals, universities)—signals continued UK fast-food consolidation and changing retail footprints. Existing store sales growth of 2.1% and price increases implemented in May affect UK consumer spending and food-price dynamics; the company's pledge to freeze prices for H2 2026 may influence competitive positioning and inflation narratives. Analyst commentary and full-year store targets (100–110 openings) set market expectations for retail recovery and consumer discretionary spending.

Timeline & Sources

Jun 30, 2026

Wire

First half of 2026 financial results: £1.1 billion sales (7.2% growth), £76 million pre-tax profit (20% growth)

Jul 29, 2026

Wire

BBC, Guardian, and Times publish results; analysts comment on performance