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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. Greggs has also expanded its healthier offerings, introducing protein-rich foods and salads, with a new chicken Caesar salad launched last week, to meet evolving consumer demand.

Greggs has been expanding its chain of shops having opened 41 during 2026, while closing 21, amid a target to open 120 on net over the year.

It also announced on Tuesday that its only international outlet will be opening at Tenerife South airport later this month as bosses hope to cash in on the millions of people passing through the travel hub each year.

Tenerife South airport welcomes around 13 million holidaymakers every year, with around 50% flying to and from the UK.

Greggs said the location made it the “perfect way to round off a trip without breaking the bank”.

The shop will also offer seating for up to 92 customers.

Greggs chief executive Roisin Currie said: “Tenerife South Airport is a hub for millions of UK and international passengers each year, making it the ideal location to test spreading our wings in an overseas setting.

“It’s an exciting milestone for Greggs as we bring a slice of home to the Canaries, and we’re confident our great-value offering will resonate just as well under the Spanish sun as it does on the UK high street.”

Meanwhile, Greggs said it was monitoring the situation in the Middle East amid rising energy costs.

The company warned that a “prolonged” conflict means it, along with other food retailers, “will likely see higher overall cost inflation through the end of 2026 and into 2027”.

Nonetheless, Greggs said it was appealing to customers looking for value-for-money in the “uncertain environment”.