Greggs has reported a boost in sales, driven by menu changes and expansion plans, but cautioned that escalating geopolitical tensions in the Middle East could lead to higher costs.

The popular bakery chain, which operates 2,759 outlets, is also set to open its first international shop in Tenerife.

In an update to investors, the company revealed a 2.5 per cent increase in like-for-like sales across its company-managed shops during the first 19 weeks of 2026. Total sales, encompassing new store openings, climbed by 7.4 per cent year-on-year, reaching £800m.

The high street favourite attributed part of its success to new menu items, including a chicken roll – positioned as an alternative to its iconic sausage roll – and a range of matcha drinks, which have reportedly resonated with new and younger customers.…