Greggs PLC (LSE:GRG) revealed that trading improved in recent weeks, though the bakery group has left its full-year guidance unchanged.
Total sales rose 7.5% to £800 million in the first 19 weeks of 2026, while like-for-like sales in company-managed shops increased 2.5%. Growth improved to 3.3% over the most recent 10 weeks, compared to 1.6% in the first nine weeks of 2026.
The food-on-the-go chain said menu innovations had helped support trading, highlighting strong demand for its new chicken roll and matcha drinks range.
Greggs said it expects a "good first half profit", helped by operational cost control and a weak comparative period last year.
The company opened 41 new shops during the period, including 17 franchised sites, while 21 shops closed or relocated. The plan for around 120 net openings in 2026 was said to remain on track.
Greggs also said it will soon open its first airport outlet outside the UK at Tenerife South Airport through a partnership with Lagardère Travel Retail.
The company expects cost inflation to remain around 3% on a like-for-like basis this year, though it warned prolonged conflict in the Middle East could increase food, energy and fuel costs into 2027.
Forward buying agreements shielded the group from near-term inflation pressures, with around five months of food and packaging costs covered and 85% of its 2026 energy and fuel needs fixed at current prices. Around half of its 2027 energy and fuel requirements have also already been locked in.