Greggs (LSE:GRG) delivered a strong set of interim results for the 26 weeks ended 27 June 2026, with total sales climbing 7.2% year over year to £1.10 billion.
Operating profit rose almost 23% to £86.5 million, while pre-tax profit jumped 19.7% compared with the same period a year earlier to £76 million.
The UK food-to-go retailer grew its share of customer visits to 8.7%, even as the broader food-to-go market experienced an overall decline during the period.
That market share gain underlines the continued appeal of Greggs’ value-focused offering at a time when consumer spending remains under pressure across the country.
Growth was supported by higher like-for-like sales across both company-operated and franchised stores, alongside continued estate expansion and growing 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, and expanded trials of “Greggs Express” self-service locations.
The company also launched its first international travel hub outlet in Tenerife, marking a notable step in extending the brand beyond its traditional UK footprint.
Greggs’ digital loyalty programme continued to strengthen customer engagement and drive repeat visits throughout the period, supporting like-for-like performance across the estate.
Product innovation remained a key growth driver, with new menu additions including the Chicken Roll, additional hot food and pizza options, refreshed salad selections, and a wider drinks range featuring iced beverages and Matcha.
Long-term infrastructure investment is also progressing, with new national distribution centres planned for Derby and Kettering to support an estate of up to 3,500 UK stores.
Management reduced 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.
The company acknowledged softer earnings quality during 2025, including pressure on margins, earnings per share, and free cash flow, alongside gradually increasing leverage as investment accelerates.
Greggs expects sales growth to continue, though supply chain investment and inflationary pressures are likely to limit profit expansion in the near term.
