Strong financial performance despite heatwave
Greggs has reported robust financial results for the first half of 2026, with total sales rising 7.2% to £1.10 billion and pre-tax profit climbing 19.7% to £76.0 million, as the bakery chain pushes ahead with ambitious expansion plans despite record summer temperatures.
The company opened a net 34 new stores during the period, bringing its total estate to 2,773 shops as of 27 June 2026. This follows a strong performance in 2025, when Greggs opened 207 new outlets – averaging almost four openings per week – which resulted in a net increase of 121 stores after accounting for 50 relocations and 36 closures.
Operating profit surged 22.9% to £86.5 million in the first half, demonstrating the strength of the business model as the company continues to gain market share. Greggs now accounts for 8.7% of UK food-to-go visits, capturing a larger slice of the market even as the wider food-to-go sector contracted.
Resilience amid challenging conditions
The results are particularly striking given the difficult trading environment. England experienced its warmest June on record in 2026, with a mean temperature of 17.1°C – nearly 3°C above the long-term average. The Met Office issued a Red Warning for Extreme Heat for three consecutive days, the first time such an alert had been sustained since extreme-heat warnings were introduced in 2021.
The heatwave took a toll on the broader retail sector, with UK retail footfall declining by 3.4% year-on-year in June. In-store non-food sales fell by 1.1% as shoppers avoided high streets and shopping centres during periods of extreme heat, though online non-food sales rose by 5.1%.
Expansion plans and long-term ambitions
Greggs is targeting between 100 and 110 net new store openings for the full year 2026, maintaining the pace of expansion that has characterized recent years. At the end of 2025, the company operated 2,739 outlets across the UK, comprising 2,137 company-managed stores and 602 franchised locations.
Looking further ahead, Greggs sees scope for up to 3,500 stores in the UK in the longer term. To support this growth, the company is investing in supply chain infrastructure, including new national distribution centres in Derby and Kettering designed to accommodate a significantly larger estate.
The first half of 2026 also marked a strategic milestone, with Greggs opening its first international shop for almost two decades at Tenerife South Airport, signalling potential expansion beyond the UK market.
Outlook
Despite the strong first-half performance, the company expects full-year 2026 underlying pre-tax profit to be at a similar level to 2025's £172 million. Management warned that higher costs from capacity investment are expected to result in second-half profit reducing year-on-year, tempering expectations despite the upbeat half-year figures.
The results demonstrate Greggs' ability to navigate challenging market conditions while maintaining its expansion trajectory, supported by investments in infrastructure and a growing share of the food-to-go market.
