Matcha and protein pivot pays off for Greggs as profits rise

Greggs's pivot towards healthier products and trending drinks has helped it boost sales, with the bakery chain reporting a 20% rise in profit over the first half of the year.

Greggs, the UK's largest fast-food chain, has launched a range of new products this year, many of which latch onto trends such as high-protein salads and matcha.

Greggs's chief executive Roisin Currie previously told BBC News the rise of weight-loss drugs has led customers to to look for "smaller portions", which could affect its bottom line.

Total sales for the bakery topped £1.1 billion for the 26 weeks to the end of June - 7.2% higher than the same period a year ago.

Pre-tax profit for the first half of the year was £76.0m - up from £63.5m for the first six months of 2025.

Currie said the company was "broadening and innovating our menu in line with changing tastes and trends".

The company relaunched its salad range in May, "adding protein and increased choice for customers".

It is also trying to appeal to "new and younger customers" through its new iced matcha lattes, and to health-conscious consumers by making nutritional information on its labels clearer.

Greggs, which has more UK outlets than McDonald's, opened 34 stores in the first half of 2026. That brings the total to 2,773, taking into account 31 store closures.

More than half of the new openings were in areas with no Greggs stores within a mile. A similar proportion opened away from the High Street in locations including petrol forecourts, supermarkets, retail parks, hospitals and university campuses, it said.

Currie said Greggs is monitoring customer behaviour to ensure new stores boost visits "without cannibalising existing shop sales".

She also said Greggs had no price rises planned after its breakfast, lunch and "big" deals went up in May, following multiple hikes last year.

"Our prices are in a good place and we will now be working hard to protect the consumer and making sure that we can offer that value throughout the rest of the year," she said.

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Susannah Streeter, chief investment strategist at Wealth Club, said the results showed that "there's still healthy appetite for affordable treats" even as many consumers become more health-conscious.

"It's also proving nimble at keeping pace with the latest food trends, showing it can compete with far more premium cafes.

"The iced matcha latte has emerged as one of the hits of its latest menu revamp, demonstrating that the bakery chain can blend social media-inspired tastes with its trademark value offering."

She added, however, that the company is warning investment in expanding its supply chain will weigh on profits for the rest of 2026 unless customer confidence improves.

Julie Palmer, managing partner at BTG Consulting, said Greggs has proved resilient against "weight-loss drugs, low spending and confidence, and rising employment and business costs".

"After a summer of sport, beer gardens and heatwaves, Greggs will be banking on autumn and winter seeing demand for its hot pastries and convenient on-the-go products returning.

"Keeping prices low and continuing to expand product ranges to meet changing food trends will be key to luring people back into its vast number of stores to achieve this."

Last year Currie addressed questions about whether "peak Greggs" had been reached after its rapid expansion, saying "we have gone out...to demonstrate that this is not the case".

The group is targeting around 100 to 110 net new shops in 2026 and trialling a "bitesize" format and a self-service "Greggs Express" format. Its store numbers could go as high as 3,500.

Greggs said its expectations for the full year outcome were unchanged - 2026 underlying pre-tax profit at a similar level to 2025's £172m.

The chain had already flagged that higher costs from investment in new stores was expected to result in second half profit reducing year-on-year.

It added 6.9% of its sales now come from home delivery. It called this an "opportunity" for growth and noted customers tend to spend three times as much on home deliveries as they do in store.

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