British baker Greggs reports sales growth as fresh menu boosts demand
Greggs' Sales Performance and Market Outlook
May 12 (Reuters) - Greggs , Britain's biggest fast food chain, reported on Tuesday improved sales growth from new menu items and kept its full-year outlook unchanged, but warned that the Middle East conflict could drive costs higher into the next year.
Impact of Middle East Conflict on UK Retailers
The fallout from the U.S.-Israeli attacks on Iran has complicated trading for UK retailers, lifting energy bills and denting consumer confidence, with shoppers cutting non-essential purchases.
Cost Inflation and Future Projections
Greggs still expects cost inflation of about 3% on a like-for-like basis this year, but cautioned that a prolonged conflict could push up costs through end-2026 and into 2027, as for other food retailers.
Sales Growth Driven by New Menu Items
The group, known for its sausage rolls and sweet treats, said like-for-like sales at company-managed shops rose 3.3% in the latest 10 weeks, supported by new menu items such as chicken rolls and salads.
(Reporting by Raechel Thankam Job in Bengaluru; Editing by Sherry Jacob-Phillips)
