Key facts
- Greggs reported a 20% increase in pre-tax profit to £76m for the first half of the year, beating forecasts.
- The company plans to expand its UK store estate to at least 3,500 locations.
- Greggs shares rose more than 8% in early trading.
- Sales increased 7.2% to £1.1bn in the first half, boosted by new menu items.
- The bakery chain aims to open over 100 new bakeries this year.
Greggs shares surged on Wednesday as the bakery chain announced plans to reach at least 3,500 stores in the UK, building on a significant jump in profit in the first half of the year. The company reported a 20% increase in pre-tax profit to £76m for the six months to June, surpassing analysts' forecasts of £75m. This profit growth was partly attributed to the launch of new menu items, including a chicken sausage roll. The company's ambitious expansion strategy, aiming for 3,500 locations, has raised questions about market saturation, but Greggs stated it has identified significant growth opportunities. Shares rose by more than 8% in early trading to 1,826p. Chief executive Roisin Currie indicated that expansion will focus on areas where the chain is currently underrepresented, such as retail parks, train stations, airports, and roadsides, while also optimizing store distribution in towns and cities. Greggs currently operates 2,773 locations in the UK and one overseas branch, with plans to open over 100 new bakeries this year. Sales grew 7.2% to £1.1bn in the first half, despite a challenging market with subdued consumer confidence. The company is also focusing on protein-rich and health-conscious options to appeal to younger consumers and expanding its smaller store formats and self-service machines.