Greggs has toasted to improving sales over the year as it shakes up its menu and targets new shops, but warned that it could be facing higher costs if the Iran war rumbles on.
The bakery chain, which runs 2,759 shops, has picked Tenerife as the location for a new international outlet.
In an update to investors, the firm said sales in company-managed shops, rather than franchises, increased by 2.5% in the first 19 weeks of 2026, compared like for like with the same period last year.
Total sales, which includes new shop openings, were up by 7.4% year on year to £800 million.
Greggs said new menu items like its chicken roll – an alternative to the staple sausage roll – and its range of matcha drinks were proving popular, while appealing to new and younger customers.
It has also been adding healthier items to its menu to cater to growing demand for nutritious and protein-rich foods including a range of salads, with a new chicken Caesar salad launching last week.
Greggs has been expanding its chain of shops having opened 41 during 2026, while closing 21, amid a target to open 120 on net over the year.
It also announced on Tuesday that its only international outlet will be opening at Tenerife South airport later this month as bosses hope to cash in on the millions of people passing through the travel hub each year.
Meanwhile, Greggs said it was monitoring the situation in the Middle East amid rising energy costs.
The company warned that a “prolonged” conflict means it, along with other food retailers, “will likely see higher overall cost inflation through the end of 2026 and into 2027”.
Nonetheless, Greggs said it was appealing to customers looking for value-for-money in the “uncertain environment”.
