Britain's Greggs raises profit outlook on improved trading

Greggs Raises Profit Outlook on Strong Sales and Plans Manufacturing Closures

Greggs Reports Strong Sales Growth and Strategic Changes

LONDON, Sept 30 (Reuters) - Greggs, Britain's largest fast-food chain, raised its annual profit outlook on Wednesday after underlying sales growth accelerated in the third quarter, helped by the launch of new products and more settled weather in August and September.

Sales Performance and Consumer Trends

The group, best known for its sausage rolls, steak bakes, vegan alternatives and sweet treats, said like-for-like sales at company-managed shops rose 3.4% in the 13 weeks to September 26, having been up 2.1% in its first half.

Impact of Consumer Behavior

British consumers unexpectedly increased their shopping in August, although they cut fuel purchases after prices jumped following the resumption of the Iran war, official data showed.

Profit Outlook and Financial Guidance

Greggs said it now expected a "modestly improved" outcome for 2026, having previously forecast an underlying pretax profit seen at a similar level to last year's £172 million ($228 million).

Closure of Manufacturing Sites

Details of Proposed Closures

The group, which trades from 2,796 shops and has a target to have at least 3,500, also said it has proposed the closure of four manufacturing sites and has begun a consultation process.

Impact on Jobs and Cost Savings

It said this could result in about 740 jobs being lost over two and a half years.

"We believe such changes, whilst difficult, are necessary to ensure Greggs continues to meet capacity requirements for growth in the years ahead in the most cost-efficient manner," it said.

The closures would cost £60 million but save an annual £20 million in operating costs.

Additional Information

($1 = 0.7547 pounds)

(Reporting by James Davey; Editing by Kate Holton)