Greggs PLC reported an improvement in its trading performance during the first quarter, with like-for-like sales rising 2.5% across the 19-week period ending in May. That figure marks an improvement on the 1.6% increase the company had reported after the first nine weeks of the period.
The group said sales momentum strengthened in the 10 weeks after the initial nine-week update, with like-for-like sales expanding by 3.3% despite encountering a tougher year-on-year comparison during that second interval. On a total revenue basis, Greggs recorded £800 million for the quarter, representing a 7.5% increase compared with the same period a year earlier.
Greggs attributed the uptick in trading to ongoing menu development. The company singled out a Chicken Roll introduced in April as a particular commercial success during the quarter, identifying the new product as a meaningful contributor to improved customer demand.
In addition to menu innovations, Greggs continued to grow its estate, opening 20 new outlets across the reporting period. Management reiterated its full-year expansion objective of delivering 120 net new stores.
On profitability and costs, Greggs maintained guidance that pretax profit for the year is expected to be broadly in line with the previous year. The company also reiterated cost guidance of around 3% on a like-for-like basis.
Addressing external risks, Greggs said it is monitoring geopolitical developments in the Middle East and indicated there is a risk of food inflation in the second half of the year. The company also noted it has hedging arrangements in place for key requirements, covering exposures through 2026 and 2027.
Performance snapshot
- Like-for-like sales: 2.5% increase for the 19 weeks to May (up from 1.6% at nine weeks).
- Accelerated sales growth of 3.3% in the 10 weeks following the first nine weeks.
- Total revenue: £800 million, up 7.5% year-on-year.
- Store growth: 20 new openings in the period; 120 net new stores target for the full year.
- Guidance: Pretax profit expected to be broadly in line with last year; cost guidance ~3% like-for-like.
Outlook and risk monitoring
Greggs is keeping a close watch on developments in the Middle East and the potential for increased food inflation in the latter half of the year. Management emphasised that core input exposures are hedged through 2026 and 2027, which it presented as a mitigating factor against near-term volatility.
While the company has restated its full-year profit and cost guidance and reaffirmed its store expansion plan, it is continuing to track external cost pressures that could affect margins in H2.