Greggs shares surge as 'viral' macaroni cheese proves a sales hit

(Sharecast News) - Shares in Greggs surged on Tuesday as the UK bakery chain reported a rebound in sales, driven by an extended range of products, including a macaroni cheese that went viral on social media while pizza boxes and flavoured iced teas also sold well. The company reported a 2.9% rise in like-for-like sales in the first 20 weeks of the year, with an improved performance in the last 11 weeks supported by better trading conditions. Shares in the chain were up 7% in London trade.

Greggs, famous for its vegan sausage rolls, said pizza boxes continued to see strong demand and hot food options, such as southern fried chicken goujons had been further complemented by the newly launched mac and cheese "which went viral on TikTok".

It added that the over-ice drinks range was performing well, including two new flavours: Peach iced tea and mint lemonade.

"After an initial trial last year, our made-to-order range, including chicken burgers, wraps and fish finger sandwiches is now available in over 300 shops nationwide and is proving popular with customers looking for a more substantial and personalised meal.

"The improved LFL sales performance has been delivered in what remains a challenging market context, and during a period that compares with our strongest performance in 2024."

"Our investment programme is on track and there has been no change to the outlook for cost inflation, which we expect to be around 6% on a LFL basis. Our plans for managing the inflationary headwinds are progressing well and, whilst early in the financial year, the Board's expectations for the full year outcome remain unchanged."

Reporting by Frank Prenesti for Sharecast.com