Matcha and protein pivot pays off for Greggs as profits rise

Greggs has seen a boost in profits following the introduction of new product lines, with the bakery chain reporting a 20% increase in profit during the first half of the year. This surge is attributed to its strategic shift towards healthier options and popular beverages.

The UK's largest fast-food chain has rolled out several new products this year, many of which align with current trends like high-protein salads and matcha. Greggs' chief executive, Roisin Currie, previously informed BBC News that the growing use of weight-loss medications has led customers to seek "smaller portions," a factor that could potentially impact the company's financial performance.

Total sales for the bakery reached over £1.1 billion for the 26 weeks ending in June, marking a 7.2% increase compared to the same period last year. Pre-tax profit for the first half of the year stood at £76.0 million, up from £63.5 million in the first six months of 2025.

Currie stated that the company is "broadening and innovating our menu in line with changing tastes and trends." In May, Greggs relaunched its salad range, "adding protein and increased choice for customers." The company is also aiming to attract "new and younger customers" with its new iced matcha lattes and to cater to health-conscious consumers by providing clearer nutritional information on its labels.

Greggs, which operates more outlets in the UK than McDonald's, opened 34 new stores in the first half of 2026. After accounting for 31 store closures, the total number of stores now stands at 2,773. More than half of these new openings were in areas where no Greggs stores existed within a one-mile radius. A similar proportion of new stores were located away from traditional High Street locations, including petrol forecourts, supermarkets, retail parks, hospitals, and university campuses.

Currie emphasized that Greggs is closely monitoring customer behavior to ensure that new stores increase visits "without cannibalising existing shop sales." She also confirmed that Greggs has no immediate plans for price increases, following adjustments to its breakfast, lunch, and "big" deals in May, which came after 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 added.

Susannah Streeter, chief investment strategist at Wealth Club, commented that the results indicate "there's still healthy appetite for affordable treats" despite a growing number of health-conscious consumers. She noted that Greggs is "proving nimble at keeping pace with the latest food trends, showing it can compete with far more premium cafes." Streeter highlighted the iced matcha latte as one of the successes of its recent menu overhaul, demonstrating the bakery chain's ability to combine social media-inspired tastes with its characteristic value offering. However, she also cautioned that the company is warning that investments in expanding its supply chain will impact profits for the remainder of 2026 unless customer confidence improves.

Julie Palmer, managing partner at BTG Consulting, remarked that Greggs has shown resilience against challenges such as "weight-loss drugs, low spending and confidence, and rising employment and business costs." She suggested that "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." Palmer concluded that "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 concerns about whether "peak Greggs" had been reached after its rapid expansion, stating, "we have gone out...to demonstrate that this is not the case." The group aims to open approximately 100 to 110 net new shops in 2026 and is piloting a "bitesize" format and a self-service "Greggs Express" format. The company's store count could potentially reach as high as 3,500.

Greggs confirmed that its expectations for the full-year outcome remain unchanged, with 2026 underlying pre-tax profit anticipated to be similar to 2025's £172 million. The chain had previously indicated that increased costs from new store investments were expected to lead to a year-on-year reduction in second-half profit. The company also noted that 6.9% of its sales now come from home delivery, identifying this as a growth "opportunity" and observing that customers tend to spend three times more on home deliveries than they do in-store.