Greggs has published what has been described a "reassuring" trading update by AJ Bell, as the bakery chain's share price increased by 4%.

In the first 19 weeks of 2026, total sales increased by 7.5% to £800m, while like-for-like sales growth increased by 2.5%, and by 3.3% in the most recent 10 weeks.

The bakery chain added that partnership with franchises and grocery retailers are "progressing well" and have contributed to the growth in overall sales.

Furthermore, Greggs said it has made encouraging profit progress in the year to date, partly reflecting a weak comparator period but also good operational cost control.

It has also reported that its new product launches reflects its focus on relevance and innovation, while "staying true to the familiar quality" that its customers expect.

Across the period, the firm has opened 41 new shops, which included 17 with franchise partners. It also closed 21 shops, including 11 relocations, resulting in a total of 2,759 shops trading on 9 May.

Greggs will continue to target 120 net openings for the full year, and in the coming weeks, it will open its first shop in an airport outside the UK in Tenerife.

In its outlook, the chain said it expects to deliver good first half profit progress, with the operational costs associated with its new Derby site primarily impacting the second half of 2026, as previously guided.

Despite operating in what it described as a "challenging market", Greggs has reiterated its guidance for the full year.

Head of markets at AJ Bell, Dan Coatsworth, said while the results were not strong enough to warrant a guidance upgrade, Greggs’ trading update is "reassuring" after a long period of "dragging its heels".

He concluded: "Another stab at international expansion is also interesting, albeit not quite setting up shop on the high street in a foreign country. Instead, Greggs is going down a less risky route of opening an outlet inside Tenerife airport. That looks like an ideal place to dip its toe into new waters, with hungry travellers not fussy about what they buy in an airport, and holidaying Brits happy for some home comforts.

"Greggs’ previous foreign efforts didn’t last long. The company originally announced in 2003 that it was ‘taking buns to Belgium’ which is a bit like a foreign retailer setting up shop in Newcastle to sell sausage rolls. Locals will always prefer their homegrown offering and even the simple task of creating a sweet bun was going to be an uphill struggle for Greggs in a foreign land.

"It was a much smaller business at the time and has arguably gained considerable experience since then. Rolling out sites in foreign transport hubs looks ideal – the big unknown is whether that market is already well served or whether there is any space for it to occupy. There will already be plenty of operators entrenched in those markets."

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