Greggs Sales Jump 7.2% as Iced Matcha and Chicken Rolls Drive 2026

Greggs sales jump 7.2% to £1.1bn in the first half of the year, fueled by iced matcha lattes and chicken rolls that became heatwave hits. The UK's largest fast-food chain is adapting to hotter summers, and its strategic menu innovations are paying off. With 34 new stores opened, Greggs now operates 2,773 outlets across the country, showing resilience and growth even as consumer habits shift.

How Greggs Adapted to Hotter UK Summers

Last summer, Greggs suffered as customers avoided hot pastries like steak bakes and vegan sausage rolls during heatwaves. This year, the company pivoted to refreshing options. Iced matcha lattes, expanded salads, and a wider range of chicken rolls have become bestsellers, driving a 2.1% increase in like-for-like sales. CEO Roisin Currie noted that the company learned from past weather patterns and now tailors its menu to seasonal demand.

New Store Performance and Expansion Strategy

The 34 net new stores opened this year are performing well, thanks to a "disciplined focus on high-quality locations." This expansion contributed significantly to the overall sales growth. Greggs' ability to select prime sites has helped it capture more foot traffic, especially in areas with high commuter and tourist activity.

Financial Highlights: Profit Surge and Cost Management

Pre-tax profit jumped nearly 20% to £76 million, driven by cost control and the successful launch of its "bake at home" frozen range in Tesco and Iceland. The company hedged 90% of its energy costs for this year and 50% for next, protecting against oil price surges. Additionally, commodity costs for cocoa and coffee have eased, allowing Greggs to hold prices steady for the rest of 2026.

Key Takeaways from Greggs' Heatwave Success

• Menu adaptation to seasonal trends (iced drinks, lighter meals) boosts sales.
• Strategic expansion in high-quality locations drives incremental revenue.
• Cost hedging and commodity price relief protect margins.
• Bake-at-home range diversifies revenue streams beyond in-store sales.
• No further price hikes expected in 2026, improving customer loyalty.

Future Outlook: Beyond "Peak Greggs"

Last year's analysts questioned whether the UK had hit "peak Greggs," but Currie's insistence on resilience has proven correct. The company's ability to innovate and respond to climate trends positions it well for continued growth. With a strong pipeline of new stores and a focus on digital orders, Greggs is set to maintain its momentum.

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