The bakery chain's shares pop as menu innovation and calmer weather reignite sales growth, even as it unveils plans to shut four factories.
Greggs (LSE: GRG) shares rose 5% in early trading on Wednesday after the sausage roll-to-sandwiches chain lifted its full-year guidance, pointing to a marked improvement in trading over the summer months.
The group said total sales climbed 7.7% in the 13 weeks to 26 September, with like-for-like sales at company-managed shops accelerating to 3.4%, as new launches including iced drinks, a relaunched salads range and a Steak & Stilton bake helped reverse a sluggish summer performance.
Greggs said the pick-up, alongside tight cost control, meant it now expects a 'modestly improved' outcome for the 2026 financial year, though it cautioned that inflationary pressures are likely to build again in 2027 and that new distribution centres would add to costs next year before boosting growth further out.
The improved numbers were overshadowed in part by news that Greggs is consulting on consolidating its in-house manufacturing network, with proposals to close four sites and cut around 740 jobs over two and a half years. The group said the restructuring would cost roughly £60m but generate annual savings of about £20m from 2028 and 2029, as it looks to keep costs down while continuing to expand its estate, which now stands at 2,796 shops after 57 net openings so far this year.
Markets commentators noted the like-for-like improvement, while not spectacular, was the clearest sign yet that Greggs' value positioning and refreshed menu are resonating with shoppers again. Investors will now watch for how the manufacturing consultation progresses and whether the stronger trading momentum carries into the key Christmas trading period.
This report is based on Greggs’s announcement and coverage by UK Investor Magazine. Company announcements can be tracked via London Stock Exchange RNS and Investegate, and the full results calendar is worth watching for the next update.
This article is for general information only and does not constitute investment advice or a recommendation to buy or sell any security. Photo: Aleksei Agafonov on Unsplash.
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