Shares in Greggs have increased by over 16% as the bakery chain saw its sales jump by 7.2% year-on-year to just over £1.1bn in the six months to 27 June.

The firm said this growth was supported by estate expansion and B2B partnership development, despite operating in a "challenging market".

Greggs reported that its pre-tax profit increased by almost 20% to £76m, while its operating profit rose by 22.8% to £86.5m.

It stated that profit growth reflects a soft comparator period, together with growth in grocery business, strong cost control and the phasing of cost inflation.

Greggs said that its brand continues to ensure that it is the “go to” destination for food-to-go, and its menu development has followed consumer food trends, with new products including iced matcha lattes, an enhanced salad range and the new chicken roll supporting its sales performance.

The bakery chain currently has an estate of 2,773 shops following 34 net openings in this period, adding that there is a "clear opportunity" for at least 3,500 UK stores in the longer term. It also expects between 100 and 110 net new stores in 2026, with an additional ten ‘Greggs Express’ convenience retailing trials.

This is expected to be supported by its new national distribution centres in Derby and Kettering.

In its outlook, Greggs said it is evolving its offer further and is making the brand more convenient for a wider range of customers.

Its outlook for cost inflation in 2026 has reduced, although some uncertainty remains. It does expect its profit in the second half to reduce year-on-year, as previously guided, with its expectations for the full-year remaining unchanged.

Chief executive at Greggs, Roisin Currie OBE, concluded: "Greggs continued to outperform the market and has delivered an improved sales performance and strong cost control through the first half of 2026, resulting in profitable growth.

"We remain focused on opening shops in more catchments and introducing convenient ways for customers to pick up Greggs favourites, while broadening and innovating our menu in line with changing tastes and trends. We are making great progress in building the supply chain infrastructure that will support the significant growth opportunities that lie ahead."

---