Greggs has reported a 20% increase in first-half profit, as Britain's largest bakery and fast-food chain benefited from new store openings and rising sales through supermarket partnerships.
The company said pre-tax profit reached £76.0m in the six months to 27 June, up from a year earlier, while total sales increased 7.2% to £1.1bn.
Like-for-like sales rose 2.1% at company-managed shops and 1.3% at franchised outlets, reflecting steady customer demand despite a challenging retail environment.
Greggs, known for its sausage rolls, steak bakes, vegan products and sweet treats, said its grocery business continued to perform strongly. The retailer expanded its partnerships with Iceland Foods and Tesco, helping to drive sales of Greggs products in supermarkets.
The chain also continued to expand its estate, opening a net 34 new stores during the first half of the year to reach 2,773 UK outlets. Greggs now has more locations across the UK than McDonald's.
Despite concerns from some analysts that the company may be approaching "peak Greggs" after years of rapid expansion, the retailer said it still sees room for growth. It plans to open 100 to 110 net new stores in 2026 and is testing smaller "bitesize" shops alongside a self-service Greggs Express format. The company believes there is potential for up to 3,500 stores.
During the period, Greggs also opened its first international outlet in nearly 20 years at Tenerife South Airport, a popular destination for British holidaymakers.
Some investors have questioned whether the growing use of weight-loss drugs such as Mounjaro and Wegovy could reduce demand for Greggs' high-calorie food, particularly among its most frequent customers.
The company said its outlook for the full year remained unchanged and it continues to expect 2026 underlying pre-tax profit to be broadly in line with 2025's £172m. However, it reiterated that higher investment costs are expected to result in lower second-half profit compared with the same period last year.
Greggs shares have risen around 3% over the past 12 months. Photo by N3ws0fa, Wikimedia commons.
