Greggs latest: Shares rise as new menu picks lure younger customers and lift sales

Greggs has been forced to push through fresh price hikes on its meal deals as the popular bakery and snacks chain reeled in health-conscious and younger customers with new menu choices.

The company, which runs 2,759 stores, also cautioned that prices could go up further if the conflict in the Middle East continues to result in higher costs.

However, City reaction to Greggs’ latest sales figures was positive, sending shares up 5 per cent in Tuesday morning trade.

Greggs runs more than 2,700 stores.

Chief executive Roisin Currie said the chain’s two-part breakfast deal, incorporating a roll and a drink, had risen from £3.15 to £3.25. The breakfast deal had already gone up from £2.95 in October.

Furthermore, Greggs’ core lunch deal has increased to £4.25, and its “big deal”, which incorporates a main, side and a drink, has risen to £5.25. That deal cost £5 when it was introduced in September last year.

Currie said the price changes had already taken effect and there were no current plans for more.

The confirmation comes as the retailer is expecting its costs to rise by around 3 per cent over 2026, but said it had taken steps to mitigate the impact such as securing fixed-price energy and fuel deals and purchase agreements for food and packaging.

Shoppers passing a new-look Greggs storefront.

However, the group warned that a “prolonged” conflict in the Middle East means that it, along with other food retailers, “will likely see higher overall cost inflation through the end of 2026 and into 2027”.

Currie said: “So we don’t see it in the coming months but we do see towards the end of the year and into next year, as the conflict goes on, then there will be an inflationary increase on our costs.

“Where significant inflation comes through to any businesses then that does get passed through at some point to the customer. We work really hard to protect our customers and make sure that we offer great value.”

She added that customers continue to be “worried” about the uncertain geopolitical environment and “very focused on trying to make sure their budgets can go as far as possible”, which she said was benefiting Greggs as a lower-cost food chain.

The sausage roll is arguably Greggs most famous product.

It comes as the group revealed its sales had increased in recent months in an improvement to its performance after a slowdown in sales growth at the beginning of the year.

Sales in company-managed shops, rather than franchises, increased by 2.5 per cent in the first 19 weeks of 2026, compared to the same period last year. This increased to 3.3 per cent in the most recent ten weeks, compared with the year before.

It noted that new menu items like its chicken roll - an alternative to the staple sausage roll - and its range of matcha drinks were proving popular, while appealing to new and younger customers.

Greggs has also been adding healthier items to its menu to cater to growing demand for nutritious and protein-rich foods including a range of salads, with a new chicken Caesar salad launching last week.

Currie said the company was focused on “following the trends that the consumer is looking for”.

The chain has been expanding its store estate having opened 41 during 2026, while closing 21, amid a target to open 120 on a net basis over the year.

It also confirmed that its only international outlet will be opening at Tenerife South airport later this month as bosses hope to cash in on the millions of people passing through the travel hub each year.

Aarin Chiekrie, equity analyst at investment platform Hargreaves Lansdown, said the group had “served up a tasty trading update” as customers tucked into more of its freshly baked goods.

“Looking ahead, the cost picture is still looking better than it has for some time, despite the Middle East conflict bringing additional pressures,” he added. “Having been proactive and locking in prices for around 85 per cent of its energy needs, Greggs expects cost inflation to only run at about 3 per cent this year.

“The group’s still targeting around 120 net new store openings this year too, after a slow start, which has seen only 20 net new openings so far.

“All in, the improving sales performance against a difficult trading backdrop shouldn’t be overlooked. And with costs still in check, management reiterated all full-year guidance, pointing to profits landing around last year’s levels, which now looks a touch conservative to us if recent momentum continues.”

Mark Crouch, market analyst for eToro, noted: “After shares lost roughly half their value between late 2024 and 2025, investors have been looking for signs that Greggs can steady both trading momentum and sentiment.

“This update goes some way towards doing that, with improving like-for-like sales, solid cost control and management sticking to full-year guidance despite an increasingly fragile consumer backdrop.

“What stands out is Greggs’ attempt to evolve the brand without losing the value-led identity that made it a British high street success story in the first place. New products such as chicken rolls, matcha drinks and protein-focused salads are clearly designed to attract younger consumers and broaden lunchtime appeal beyond the traditional pastry customer.

“The risk, however, is whether Greggs drifts too far from the simple, affordable formula that built its loyal customer base.”

He added: “Greggs has sensibly locked in a large proportion of energy and commodity costs, but management’s warning over escalating Middle East tensions highlights how quickly fuel, transport and food prices could rise again. If inflationary pressures intensify into 2027, preserving margins while keeping prices attractive for cost-conscious consumers may become a far tougher balancing act.”

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