Greggs Raises Profit Outlook After Stronger Trading

Post by : Saif

Greggs has raised its profit outlook for 2026 after stronger sales in the third quarter, helped by new products and better weather in August and September. The British bakery and fast-food chain said trading had improved compared with the first half of the year.

Like-for-like sales at Greggs shops operated by the company increased 3.4% in the 13 weeks to September 26. That was an improvement from the 2.1% growth reported during the first half of the year.

Greggs Sees Better Sales Growth

Greggs is best known for products such as sausage rolls, steak bakes, vegan options and sweet treats. The company said improved trading during the third quarter supported its decision to raise its expectations for the full year.

The retailer now expects a “modestly improved” underlying pretax profit for 2026. Previously, it had expected profit to remain broadly similar to the £172 million recorded last year.

Improved weather during August and September helped customer activity, while new products also contributed to sales growth.

Broader retail activity in Britain also showed signs of improvement. Official figures showed consumers unexpectedly increased their shopping in August, although fuel purchases declined after prices rose following the resumption of the Iran war.

Greggs Plans Four Site Closures

Alongside the improved outlook, Greggs announced plans to close four manufacturing sites. The company has started a consultation process that could result in around 740 jobs being lost over the next two and a half years.

Greggs said the changes were needed to make sure its manufacturing capacity could support future growth at a lower cost.

The closures are expected to cost about £60 million. However, Greggs estimates they could reduce annual operating costs by around £20 million.

The company currently operates 2,796 shops across Britain and has a long-term target of reaching at least 3,500 locations.

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Company Balances Growth With Cost Control

Greggs is expanding its shop network while also reviewing how its manufacturing operations are organised. The planned closures indicate that the company is looking to adjust its production capacity as it continues to grow.

The stronger third-quarter sales performance provides some support for its revised 2026 outlook. However, the manufacturing changes are expected to bring job losses and restructuring costs during the transition.

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