Greggs shares jumped nearly 20% in London trading after the bakery chain reported robust half-year results that exceeded market expectations.
The company posted a 7.2% increase in like-for-like sales, reaching £1.1 billion for the 26 weeks ended 27 June, demonstrating resilience despite a summer heatwave that typically dampens demand for hot food items.
The strong performance was underpinned by successful new product introductions, particularly iced matcha teas and chicken rolls, which helped offset seasonal headwinds.
This marks a continuation of the growth trajectory seen in the first half of the year, where Greggs previously reported a 20% increase in profit driven by aggressive store expansion and accelerating growth in its grocery retail division.
Investors responded positively to the evidence that Greggs is successfully diversifying its product mix beyond its traditional sausage roll core.
The ability to maintain sales momentum during adverse weather conditions suggests strong underlying brand loyalty and effective operational management.