Greggs, the UK's largest bakery chain, has reported a surge in first-half profit and sales, fueled by a strategic menu pivot towards health-conscious options and a continued aggressive expansion of its store estate. The company's shares soared over 16% as it revealed plans to grow to at least 3,500 shops, dismissing concerns that it had reached saturation point .

Financial Performance and Market Reaction

For the 26 weeks to June 27, 2026, Greggs reported a 7.2% rise in total sales to over £1.1 billion . Pre-tax profit jumped 19.7% to £76 million, up from £63.5 million in the first half of 2025 . This strong performance, which beat market expectations, was attributed to "growth in the grocery business, strong cost control and the phasing of cost inflation" .

The market reacted enthusiastically. Greggs shares skyrocketed by more than 16% on the day of the results, reaching a new 52-week high . An investment of £5,000 made on the Monday before the results would have been worth approximately £6,175 by the following day [citation:yahoofinance].

Menu Innovation and Product Hits

A key driver of the sales growth was a strategic revamp of the menu to align with changing consumer trends . The company successfully targeted health-conscious consumers and younger demographics with new offerings, adapting to the UK’s increasingly hot summers by focusing on iced and lighter options [citation:guardian].

Specific product successes highlighted by the company include:

• Iced Matcha Lattes: This has emerged as a major hit, helping Greggs tap into social media-inspired beverage trends .

• The New Chicken Roll: Launched in April, it was described as a "standout success" .

• Protein Salads: A relaunched salad range featuring more protein, including chicken caesar and prawn layered pasta salads, broadened the chain's healthier lunchtime appeal [citation:guardian].

• Bake-at-Home Range: The expansion of its frozen product line in Tesco and Iceland supermarkets contributed to overall growth [citation:guardian].

CEO Roisin Currie noted that the company is now more resilient to weather patterns than in previous years, after sales were hit during a previous summer heatwave [citation:guardian]. Despite adapting to healthier trends, Currie emphasized that customers "still enjoyed an occasional sweet treat" .

Store Expansion Plans

On the store expansion front, Greggs opened a net 34 new shops in the first half of the year, bringing its total estate to 2,773 . For the full year, the company expects to open 100 to 110 net new shops, slightly below its earlier target of 120 as it focuses on "higher-quality growth" .

More significantly, the company raised its long-term target, now aiming to operate at least 3,500 shops across the UK, well above its previous 3,000-site goal . CEO Roisin Currie indicated that this number could even be exceeded .

• New Formats: The company is expanding beyond the traditional high street with a focus on locations where it is "underrepresented," including transport hubs, retail parks, and petrol forecourts [citation:guardian]. It is also trialing smaller format "Bitesize" shops and self-service "Greggs Express" units .

• International Expansion: Greggs opened its first overseas shop at Tenerife South Airport in May, serving British tourists .

Pricing and Outlook

Despite rising costs, CEO Roisin Currie confirmed that Greggs has no further price rises planned for 2026 after adjusting prices on meal deals earlier in the year . The company expects cost inflation of about 2-3% for the year .

The company cautioned that heavy investment in new stores could weigh on profits in the second half of the year, though expectations for the full-year outcome remain unchanged .