Greggs (LSE:GRG) said on Tuesday that improved trading in recent months and continued strong cost control now lead it to expect a modestly improved outcome for 2026, an upgrade to its prior guidance.
The UK bakery chain reported total sales up 7.7% for the 13 weeks to 26 September, with like-for-like sales in company-managed shops rising 3.4% over the same period, faster than the 2.1% pace reported at its half-year results in June.
Year-to-date total sales rose 7.4%, with like-for-like sales up 2.6%, which Greggs attributed to menu innovation, including its iced drinks range and relaunched salads, and more settled weather in August and September.
The company opened 95 new shops and closed 38 (including 20 relocations) so far this year, a net addition of 57, taking its estate to 2,796 shops. It continues to expect 100 to 110 net openings for 2026, alongside 12 "Greggs Express" convenience installations, and kept cost inflation guidance unchanged at around 2% on a like-for-like basis.
Alongside the update, Greggs launched a consultation on proposals to consolidate its in-house manufacturing operations, which could close four sites and put around 740 roles at risk of redundancy over two and a half years. The changes would cost around £60m in cash, including £40m of capital expenditure, against expected annual pre-tax savings of about £20m from 2028 and 2029.
New distribution centres in Derby and Kettering, due to be operational in 2026 and 2027 respectively, will raise overhead costs in 2027 before contributing to profitable growth thereafter, the company reiterated.