Greggs raised its full-year expectations after trading improved in the third quarter, but announced plans to close four manufacturing sites, potentially costing around 740 jobs.
The baker and food-to-go chain said total sales rose 7.7% in the 13 weeks to 26 September, with like-for-like sales at its company-managed shops up 3.4%, an improvement it attributed to menu innovation and more settled weather, after a soft summer. New products including iced drinks, a salads relaunch and a Steak & Stilton bake helped drive the pick-up. It opened 57 net new shops in the year to date, taking its estate to 2,796.
”Greggs has spent much of the past year answering a single awkward question; has Britain finally had enough sausage rolls? This morning’s update, and the jump in the shares at the open, suggests the answer is still no,” said Adam Vettese, Market Analyst at investment platform eToro.
“Like-for-like sales accelerating to 3.4% is not a boom. It is, however, the first convincing sign that the brand’s value offer and a more interesting menu are cutting through a tired high street. Matcha lattes and chicken rolls will not transform the P&L on their own, but they show Greggs can still refresh itself without abandoning the customers who made it ubiquitous.”
Alongside the update, Greggs launched a consultation on consolidating its in-house manufacturing, with proposals that could see four sites close and about 740 roles made redundant over two and a half years.
The changes would cost around £60m but deliver annual savings of about £20m from 2028 and 2029. The company said the move was necessary to ensure it could meet future growth demand cost-effectively while maintaining the value it is known for.
On the back of the improved trading and tight cost control, Greggs said it now expected a “modestly improved” outcome for 2026, though it flagged signs of greater inflationary pressure in 2027 and reiterated that its new distribution centres would raise costs next year before contributing to growth.
The market liked today’s update, and shares rose 5% in early trading on Wednesday.