Greggs Navigates Challenging Quarter: Sales Rise, Outlook Steady

Greggs (LON: GRG) shares jumped on Wednesday after the company reported a 6.1% increase in total sales for the third quarter of 2025, signaling resilience in a tough market.

The bakery chain's like-for-like sales in company-managed shops grew by 1.5% during the same period.

The company saw improved trading in August and September, recovering from a July impacted by unusually high temperatures. Year-to-date, total sales are up 6.7% and like-for-like sales have risen by 2.2%.

Greggs continues to expand its footprint, having opened 130 new shops and closed 73 (including 39 relocations) year-to-date, resulting in a net increase of 57 stores. The company now anticipates around 120 net new shop openings for the full year 2025.

Greggs has expanded the availability of its frozen ‘Bake at Home' range through a new relationship with Tesco, initially launching a selection of five products. This strategic move significantly broadens the accessibility of Greggs' products to a wider customer base.

The company has opened 130 new shops and closed 73 shops (including 39 relocations) year-to-date, resulting in 57 net new openings and a total of 2,675 shops trading as of September 27, 2025. This includes 2,096 company-managed shops and 579 franchised units.

Investment in the supply chain is said to be progressing well, supporting estate growth plans. The testing of automation capabilities at the new frozen product manufacturing and logistics facility in Derby is proceeding as planned, with the site on track to open in 2026.

Construction of the new chilled and ambient National Distribution Centre in Kettering is nearing completion, with the facility expected to be operational in 2027.

Greggs concluded that operational costs have been well managed and “the outlook for cost inflation in 2025 is marginally improved.” The company's expectation for the full year is unchanged.