Greggs (LSE:GRG), the bakery and food-to-go chain, reported total sales of £1.101 billion for the 26 weeks to 27 June, up 7.2% from £1.027 billion a year earlier.
Operating profit rose 22.9% to £86.5 million, while pre-tax profit climbed 19.7% to £76.0 million, gains the company attributed to a soft prior-year comparator, growth in its grocery business, and tight cost control.
Like-for-like sales rose 2.1% in company-managed shops and 1.3% in franchised shops, with the group's share of food-to-go visits climbing 0.3 percentage points to 8.7% over the 12 months to June, even as overall market visits fell 1.9%, according to Circana data cited by the company.
"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," said chief executive Roisin Currie.
The group declared an unchanged interim dividend of 19.0p per share and opened 34 net new shops in the period, taking its estate to 2,773, with 100 to 110 net openings expected for the full year.
Capital expenditure guidance for 2026 was trimmed to around £180 million from £200 million, and the board said its expectations for the full-year outcome remain unchanged.
News Intelligence what this means for the company
Greggs delivered a 22.9% operating profit jump in H1 2026 on 7.2% sales growth, driven by market share gains in a shrinking food-to-go sector and tight cost control. The company held full-year guidance unchanged and trimmed capex by £20m to £180m, signalling confidence in near-term execution while moderating investment intensity—a posture that balances growth ambition with cash discipline.
Greggs is demonstrating pricing power and operational leverage in a contracting market, with like-for-like sales growth and share gains offsetting sector headwinds. The unchanged full-year outlook and capex reduction suggest management expects H2 to track H1 momentum without requiring elevated investment, though the 0.3 percentage point share gain on a 1.9% market decline underscores how dependent the bull case is on sustained value positioning in a cost-conscious consumer environment.
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