Greggs shares jumped on Tuesday after the sausage roll specialist reported improved trading performance in the first 20 weeks of 2025, with total sales increasing by 7.4% to £784 million compared to £730 million in the same period last year.
The high street baker saw like-for-like sales in company-managed shops grow by 2.9%, with performance strengthening during the latter part of the period. The company noted that “better trading conditions” had supported this improved trend.
A stabilisation in costs will be welcomed by investors. Greggs was built on its affordable sausage rolls and steak bakes, and high inflation has threatened its ability to maintain low prices. The company said it sees no change in cost inflation after many periods of rising prices.
In recent years, Greggs has been focused on product innovation, and the results were evident in today’s update.
The firm’s over-ice drinks range, now available in 1,300 shops, is performing well following the introduction of two new flavours: Peach Iced Tea and Mint Lemonade. Pizza boxes continue to see strong demand, whilst the newly launched Mac and Cheese has gained viral popularity on TikTok.
The company’s made-to-order range, which includes chicken burgers, wraps and fish finger sandwiches, has now been rolled out to over 300 shops nationwide after an initial trial last year.
Shop Estate Expansion
Greggs remains active in expanding its retail footprint, opening 66 new shops during the period, including 15 with franchise partners and four new Drive-Thrus – one of which marks the company’s first in Northern Ireland, located in Craigavon.
The firm closed 46 shops in the same period, including 21 relocations, bringing its total estate to 2,638 shops as of 17 May. This comprises 2,077 company-managed shops and 561 franchised units.
Shop closures have been first-half weighted in 2025, but with a strong pipeline, Greggs maintains confidence in achieving its target of 140 to 150 net openings for the full year.
Supply Chain Development
Construction of Greggs’ new frozen product manufacturing and logistics facility in Derby, along with its National Distribution Centre in Kettering, is progressing “at pace”. The sites are expected to become operational in 2026 and 2027 respectively, in line with planned timescales and budget.
Outlook Unchanged
Despite delivering improved like-for-like sales in what it describes as “a challenging market context”, Greggs has maintained its full-year guidance. The company expects cost inflation to remain around 6% on a like-for-like basis.
The Board’s expectations for full-year outcomes remain unchanged, with the company noting that its plans for managing inflationary headwinds are “progressing well”.
Greggs shares were down 28% on the year before trading got underway today. The 6% jump in Greggs shares in early trade reflects price stabilisation and a softening in concerns that the price of a sausage roll and other baked goods were becoming too expensive for Greggs’ core customer base.