It’s been a while since I’ve been able to write that Greggs (LSE:GRG) shares are on a roll. Or heating up. But after rising impressively over the past couple of days, it feels fitting to dust off a couple of Greggs-related puns.
Actually, calling it a rise doesn’t do Greggs justice. Because the FTSE 250 stock skyrocketed 16.1% today (29 July), taking the return since Monday morning to roughly 23.4%.
To put that into perspective, a £5,000 investment made at the start of the workweek would already be worth about £6,175 (excluding stamp duty and trading commissions).
What’s behind this sudden burst upwards?
Strong results
The catalyst for today’s jump was the company’s interim results for the 26 weeks ended 27 June. Sales were up 7.2% to £1.1bn, with 2.1% like-for-like sales growth in company-managed shops. Operating profit jumped 22.9% to £86.5m.
Growth was primarily driven by opening new shops, with 34 net openings in the first half. But management also flagged good business-to-business growth, as it sells more frozen products through Iceland and Tesco.
Greggs is also adapting well to the challenges associated with GLP-1 drugs by introducing more protein-based and healthier options. For example, it’s added chicken and prawn pasta salads to its lunchtime offerings.
The new matcha drinks are also proving popular, while the Chicken Roll launched in April has been “a standout success“, according to Greggs.
Costs are being kept in check, with around £11m of structural savings expected in 2026. And Greggs now anticipates cost inflation staying at around 2% for the full year.
Peak Greggs?
For 2026, Greggs has trimmed its new store target to 100–110 openings, down from its original guidance of 120. Over the medium term, it plans to open around 100 net new shops each year, eventually reaching 3,500, up from 2,773 today.
However, it could be more each year if the trial of ‘Greggs Express’ — a smaller self-service offering — catches on. Costa Express found success with this format over the past decade.
A final thing worth mentioning is that Greggs has gone international again. But rather than taking buns to Belgium, it has opened a shop in Tenerife South Airport, where around 3m British travellers pass through every year.
The first few weeks of trading in Tenerife have been “very encouraging“, says CEO Roisin Currie, and I see no reason why Greggs can’t do very well in other international airports frequented by hordes of hungry Britons.
Stepping back, I don’t think we’ve reached peak Greggs yet. The brand could keep growing by scaling up the ‘bitesize Greggs’ and ‘Greggs Express’ formats, expanding the Bake-at-Home frozen range with supermarkets, and opening more overseas locations.
Short squeeze?
Given that Greggs is one of the UK’s most shorted shorts, I strongly suspect today’s massive jump relates to short sellers buying to cover their positions. So it might have a bit further to run.
Either way, I think Greggs is worth considering. It’s not one I plan to load up on because the UK economy remains fragile and people are sadly still struggling financially. The ongoing Iran war adds cost inflation risks.
But Greggs is trading reasonably and offering a 3.5% dividend, with management indicating plans to “increase returns to shareholders” as the business enters a more cash-generative phase though 2028.
Should you invest £5,000 in Greggs Plc right now?
When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.
And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Greggs Plc made the list?
Ben McPoland has no position in any of the companies mentioned.
It’s been a while since I’ve been able to write that Greggs (LSE:GRG) shares are on a roll. Or heating up. But after rising impressively over the past couple of days, it feels fitting to dust off a couple of Greggs-related puns.
Actually, calling it a rise doesn’t do Greggs justice. Because the FTSE 250 stock skyrocketed 16.1% today (29 July), taking the return since Monday morning to roughly 23.4%.
To put that into perspective, a £5,000 investment made at the start of the workweek would already be worth about £6,175 (excluding stamp duty and trading commissions).
What’s behind this sudden burst upwards?
Strong results
The catalyst for today’s jump was the company’s interim results for the 26 weeks ended 27 June. Sales were up 7.2% to £1.1bn, with 2.1% like-for-like sales growth in company-managed shops. Operating profit jumped 22.9% to £86.5m.
Growth was primarily driven by opening new shops, with 34 net openings in the first half. But management also flagged good business-to-business growth, as it sells more frozen products through Iceland and Tesco.
Greggs is also adapting well to the challenges associated with GLP-1 drugs by introducing more protein-based and healthier options. For example, it’s added chicken and prawn pasta salads to its lunchtime offerings.
The new matcha drinks are also proving popular, while the Chicken Roll launched in April has been “a standout success“, according to Greggs.
Costs are being kept in check, with around £11m of structural savings expected in 2026. And Greggs now anticipates cost inflation staying at around 2% for the full year.
Peak Greggs?
For 2026, Greggs has trimmed its new store target to 100–110 openings, down from its original guidance of 120. Over the medium term, it plans to open around 100 net new shops each year, eventually reaching 3,500, up from 2,773 today.
However, it could be more each year if the trial of ‘Greggs Express’ — a smaller self-service offering — catches on. Costa Express found success with this format over the past decade.
A final thing worth mentioning is that Greggs has gone international again. But rather than taking buns to Belgium, it has opened a shop in Tenerife South Airport, where around 3m British travellers pass through every year.
The first few weeks of trading in Tenerife have been “very encouraging“, says CEO Roisin Currie, and I see no reason why Greggs can’t do very well in other international airports frequented by hordes of hungry Britons.
Stepping back, I don’t think we’ve reached peak Greggs yet. The brand could keep growing by scaling up the ‘bitesize Greggs’ and ‘Greggs Express’ formats, expanding the Bake-at-Home frozen range with supermarkets, and opening more overseas locations.
Short squeeze?
Given that Greggs is one of the UK’s most shorted shorts, I strongly suspect today’s massive jump relates to short sellers buying to cover their positions. So it might have a bit further to run.
Either way, I think Greggs is worth considering. It’s not one I plan to load up on because the UK economy remains fragile and people are sadly still struggling financially. The ongoing Iran war adds cost inflation risks.
But Greggs is trading reasonably and offering a 3.5% dividend, with management indicating plans to “increase returns to shareholders” as the business enters a more cash-generative phase though 2028.
Should you invest £5,000 in Greggs Plc right now?
When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.
And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Greggs Plc made the list?
Ben McPoland has no position in any of the companies mentioned.
