Greggs shares jump 7% to 2-month high as profit outlook raised

Investing.com -- Greggs shares jumped to a two-month high on Wednesday after the British bakery chain raised its 2026 profit outlook as sales growth strengthened through the summer, while it also proposed closing four manufacturing sites as part of a cost-saving plan.

Still guessing which names to buy? Our AI rebuilds its stock picks at the start of every month. The list is beating the market by 120%. See what's on it »

The shares rose 7% to 2,006 pence, trading near their 52-week high and at their highest level since July 30. That sharply outpaced the broader market, with the FTSE 100 up about 0.7% in early London trading.

The British bakery chain said it now expects a "modestly improved" outcome for 2026, after previously forecasting underlying pretax profit to be around the level of the prior year's £172 million. The company also began a consultation on the proposed manufacturing changes, which could result in about 740 roles being made redundant over two and a half years.

The planned closures are expected to cost about £60 million in cash, including roughly £40 million of capital expenditure, as well as disruption costs and redundancy payments.

Should you buy NVIDIA right now? Before you decide, consider this: an AI-powered list of stock picks is outperforming the market by 120%, and it updates at the start of every month. See this month's picks »

In return, Greggs expects to generate around £20 million of annual pre-tax operating cost savings, with the benefits expected to be realised across the 2028 and 2029 financial years.

Greggs reported total sales growth of 7.7% in the 13 weeks to September 26, while like-for-like sales at company-managed shops rose 3.4%, improving from 2.1% growth in the first half.

For the first 39 weeks of 2026, total sales increased 7.4%, while like-for-like sales were up 2.6%.

The company attributed the stronger summer performance primarily to new product launches and more settled weather in August and September. Iced drinks performed well, including Matcha and Cherry Lemonade variants, while relaunched salads and protein-focused products also sold strongly.

The group continues to target 100 to 110 net new shop openings for the full year, implying a busy final quarter.

Alongside the expansion, Greggs said it is facing a more challenging cost environment ahead. Like-for-like cost inflation is running at around 2% this year, but the company expects inflationary pressure to increase in 2027.

Looking for the next multi-bagger? This AI enabler is up 90%+ since picked by our AI models in July -- and still has a 62% upside »

Original Article

Greggs shares jump 7% to 2-month high as profit outlook raised

Saga shares jump 13% after profit outlook raised on stronger summer trading

SkiStar FY operating profit rises 11% as mountain demand grows