High street sausage roll specialist Greggs has seen its sales shoot up 7.5% in the first 19 weeks of the year, reaching £800million.
The update advised that, amid the positive sales growth, Greggs continues to monitor the Middle East conflict and could see overall cost inflation should the war continue.
However, it noted that the "uncertain environment" means Greggs value offering remains "highly attractive as customers look to make their money go further".
So far in 2026, Greggs has opened 41 new shops, a net increase of 20, taking its total to 2,759.
A trading update from the company stated: "LFL sales performance has improved against what remains a challenging market, with good operational cost control supporting encouraging year-on-year profit progress in the year to date.
"There has been no change to the overall outlook for cost inflation, which we expect to be around 3% on a LFL basis.
"Our forward buying of key commodities continues to provide protection against increased inflation in the near term; we have forward purchase agreements in place representing circa five months of cover for our food and packaging needs and 85% of our 2026 energy and fuel requirements are fixed in price. In addition, circa 50% of our 2027 energy and fuel requirements are fixed.
"We are monitoring the situation in the Middle East and should the conflict continue and become prolonged we, like all food retailers, will likely see higher overall cost inflation through the end of 2026 and into 2027.
"In this uncertain environment, our value offer remains highly attractive as customers look to make their money go further. We expect to deliver good first half profit progress, with the operational costs associated with our new Derby site primarily impacting the second half of 2026, as previously guided."
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