Greggs has hailed stronger sales driven by menu shake-ups and expansion plans, while warning that a prolonged conflict in Iran could heap fresh inflationary pressure on the food industry.
The bakery giant said sales at company-managed stores rose by 2.5pc in the first 19 weeks of 2026 compared with the same period last year, as customers flocked to new products including chicken rolls, matcha drinks and healthier lunch options.
Total sales climbed 7.4pc year-on-year to £800m, boosted by a rapid pace of new shop openings.
The chain, which now operates 2,759 outlets across the UK, said it remained on track to achieve a net increase of 120 stores this year, having opened 41 sites and closed 21 during the period.
In a further sign of its ambitions beyond Britain, Greggs also confirmed its first and only international outlet will open later this month at Tenerife South Airport.
The company is betting that millions of British holidaymakers travelling through the airport each year will provide fertile ground for sausage rolls, bakes and sweet treats abroad.
Bosses said newer menu additions were helping attract younger consumers and broaden Greggs’ appeal beyond its traditional customer base.
Alongside its classic sausage rolls, the chain has been expanding into protein-rich, health-focused foods, including salads and lighter lunch options.
A new chicken Caesar salad launched last week as part of the strategy.
However, the upbeat sales figures were accompanied by a warning over mounting geopolitical risks as tensions in the Middle East continue to rattle energy markets.
Greggs said it was closely monitoring developments surrounding the conflict involving Iran, cautioning that sustained disruption could drive up operating costs well into next year.
The company warned that a “prolonged” conflict would “likely see higher overall cost inflation through the end of 2026 and into 2027”.
Rising energy prices pose a particular threat for food manufacturers and retailers, many of whom remain exposed to higher transport, refrigeration and production costs.
The warning comes as businesses across Britain brace for the wider economic fallout from instability in the Gulf and fears over disruption to global oil supplies passing through the Strait of Hormuz.
Despite the uncertain backdrop, Greggs insisted it remained well-positioned as cash-strapped consumers continue searching for affordable food options.
The company said its value-for-money offering was resonating strongly with customers in the current “uncertain environment”.
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