Greggs’ share price has hit its highest point in more than a year, after the high street stalwart upgraded its profit guidance and unveiled major cuts to its manufacturing base.
The bakery’s stock leaped by nearly 8% to a high of 2,030p on Wednesday (30 September) after an early morning update to investors revealed it expected a “modestly improved” profit for the year after strong summer trading.
Greggs’ refreshed product lineup, now including matcha and iced drinks, and September’s “more settled” weather helped to stabilise like-for-like trading volumes after three years of decline.
“The comparatives now get tougher again, but there is a degree of momentum in trading at the moment,” said Peel Hunt analyst Jonathan Pritchard.
Like-for-like sales growth improved to 3.4% in the 13 weeks to 26 September 2026, marking an acceleration from the 2.6% it has averaged in the first three quarters of the year.
The results were proof the chain had made a success of “following customers towards healthier habits”, according to Freetrade analyst Alex Pugh. He added Greggs had “quietly become a drinks brand” over the scorching summer.
Top-line sales growth remained robust at 7.7% thanks to an aggressive bricks & mortar expansion strategy, with the group on track to hit its goal of 100 to 110 new stores opened in 2026.
Profits will likewise be supported in the long term by Greggs’ manufacturing restructure, which will lead to the loss of 740 jobs as four factories are closed and several others repurposed. While it will cost the group around £60m in cash, on top of redundancy payments and trading disruption, the programme will save Greggs approximately £20m a year from 2027-28. The savings earned Greggs praise from analysts, given the restructure will pay for itself in just three years.
“Greggs has found its groove again,” said Dan Coatsworth, head of markets at AJ Bell. Praising the company’s efforts to rejuvenate and expand its real estate portfolio and menu, he said the group was “spinning more plates than a circus performer”.
“Greggs is carrying out a multi-pronged strategy to reposition itself for long-term success. Opening new stores increases the opportunity to reach as many members of the public as possible in sites with the most potential.”
Coatsworth added the manufacturing consolidation was likewise an “important consideration” given the prospect of higher inflation through 2027 and 2028.
“The proposed manufacturing consolidation is about trying to find long-term cost savings and have food preparation units located in the right places to serve what it wants the estate to look like in the future. “
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