Greggs' new menu helps bake in sales growth, shares rise

* New menu ​items like chicken roll and salads a hit with customers

* Greggs warns Iran war may raise ​cost ‌inflation into next year

* Like-for-like sales up 3.3% in the latest 10 weeks

May 12 (Reuters) - Greggs said ⁠on Tuesday its comparable sales rose 3.3% in ⁠the last 10 weeks as ​its new menu items proved a hit with customers, sending shares of Britain's biggest fast food chain up over 6%, despite the risk of rising costs from the ​Iran war.

Greggs, ‌known for its sausage rolls and sweet treats, said its new chicken roll, launched in April, had quickly become a customer favourite, while expanded salad options such as chicken caesar and protein-rich options appealed to more health-conscious diners.

That helped ​like-for-like sales in company-managed shops rise 2.5% in the first 19 weeks of ‌2026, markedly improving to 3.3% in the most recent 10 weeks, the company said. The robust performance comes as British ‌retail sales have been squeezed by the economic fallout of the Middle East conflict, which has fuelled higher energy and living costs, adding to inflation worries and curbing ​discretionary spending.

RBC Europe Limited analyst Ross Broadfoot called the results encouraging, noting the improving volume ‌trend was particularly positive given some may have expected worse given the current climate.

Greggs warned that prolonged Middle East tensions could push cost inflation beyond its current 3% ⁠forecast through ⁠late 2026 and into 2027, although it has hedged ‌about five months of food costs and 85% of this year's energy needs.

About half of its ​2027 energy and ​fuel requirements are also fixed, the company said.

Greggs reiterated ‌that costs from its new manufacturing site in Derby, central England, will primarily hit second-half earnings, and still held to its full-year forecast.

Greggs