Greggs H1 sales rise on shop and grocery growth
Greggs H1 sales rise on shop and grocery growth
Overview
UK food-to-go retailer's H1 sales rose 7.2% yr/yr, driven by shop openings and grocery growth
Operating profit up 22.9% and pre-tax profit up 19.7%, reflecting cost control and grocery gains
Like-for-like sales in company-managed shops increased 2.1%
Outlook
Greggs says Board's expectations for full-year outcome are unchanged
Company expects 2026 cost inflation to be around 2.2%
Greggs plans 100-110 net new shop openings in 2026
Result Drivers
ESTATE EXPANSION - New shop openings and expanded grocery partnerships contributed to sales growth
MENU INNOVATION - New product launches, including the Chicken Roll and enhanced salad range, supported like-for-like sales
COST CONTROL - Strong operational cost control and lower-than-anticipated cost inflation supported profit growth
Company press release: ID:nRSc2535Oa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Sales | Slight Beat* | GBP 1.10 bln | GBP 1.09 bln (1 Analyst) |
H1 Dividend |
| GBP 0.19 |
|
H1 Like-For-Like Growth |
| 2.10% |
|
H1 Pretax Profit |
| GBP 76 mln |
|
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 7 "strong buy" or "buy", 5 "hold" and 4 "sell" or "strong sell"
The average consensus recommendation for the restaurants & bars peer group is "buy."
Wall Street's median 12-month price target for Greggs PLC is GBp1,630.50, about 3.5% below its July 28 closing price of GBp1,690.00
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 12 three months ago
Reuters Recommended Reads
July 28 - Upper Crust owner SSP Group keeps full-year target; quarterly sales rise on UK growth
July 27 - UK's Tortilla Mexican Grill FY25 revenue rises 8.5%
July 29 - France's Danone H1 sales rise 3.5% LFL on high-protein products demand
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)