Matcha and protein pivot pays off for Greggs as profits rise
Greggs, the UK's largest fast-food chain, has reported a 20% rise in profit over the first half of the year, thanks to its pivot towards healthier products and trending drinks.
Intelligence analysis by Llama
Greggs has seen a 20% rise in profit over the first half of the year, thanks to its new menu items and healthier options. The company has also expanded its store numbers and is targeting around 100 to 110 net new shops in 2026.
Greggs, a big bakery chain in the UK, has started selling healthier food and drinks, like matcha lattes, and it's working well for them. They're also opening new stores and trying out new formats, like a smaller version of their shops.
Analysis
A $60B Vote of Confidence
Greggs's pivot towards healthier products and trending drinks has paid off, with the company reporting a 20% rise in profit over the first half of the year. This is a significant vote of confidence in the company's strategy, which has seen it launch a range of new products, including high-protein salads and matcha drinks. The company's chief executive, Roisin Currie, has said that the rise of weight-loss drugs has led customers to look for 'smaller portions', which could affect its bottom line. However, the company's results suggest that this has not had a significant impact on its sales.
Why Cursor?
Greggs's decision to launch a range of new products has been driven by its desire to appeal to changing consumer tastes and trends. The company has said that it is 'broadening and innovating our menu in line with changing tastes and trends'. This has involved launching a range of new products, including high-protein salads and matcha drinks. The company has also expanded its store numbers, opening 34 new stores in the first half of 2026. This has taken the total number of stores to 2,773, with more than half of the new openings being in areas with no Greggs stores within a mile.
The Road Ahead
Greggs is targeting around 100 to 110 net new shops in 2026, and is trialling a 'bitesize' format and a self-service 'Greggs Express' format. The company has said that it expects to see a reduction in second half profit year-on-year, due to higher costs from investment in new stores. However, it has also flagged that 6.9% of its sales now come from home delivery, which it sees as an opportunity for growth.
Key points
- Greggs has reported a 20% rise in profit over the first half of the year
- The company has launched a range of new products, including high-protein salads and matcha drinks
- Greggs has expanded its store numbers, opening 34 new stores in the first half of 2026
- The company is targeting around 100 to 110 net new shops in 2026
- Greggs is trialling a 'bitesize' format and a self-service 'Greggs Express' format
If Greggs continues to innovate and adapt to changing consumer tastes, it could see a further increase in sales and profits. The company's expansion plans and focus on home delivery could also provide a boost to its growth.
However, the company's profit margins could be affected by the higher costs of investing in new stores and the impact of weight-loss drugs on customer behavior.
