Greggs has seen its like-for-like (LFL) sales increase by 1.5% in the 13 weeks to 27 September, following a "heat-affected" July.
The bakery chain said it had seen improved trading in August and September, with LFL sales rising by 2.2% in the year-to-date.
Greggs’ total sales increased by 6.1% in the 13 weeks to 27 September, while in the year-to-date, this figure increased by 6.7%.
In 2025, the bakery firm has opened 130 new shops and closed 73, including 39 relocations.
Furthermore, it has also extended its frozen Bake at Home range through a new relationship with Tesco, and as a result, the range is available in 930 Iceland and 820 Tesco stores across the UK and online.
Greggs said it is continuing to make progress despite challenging market conditions, adding that it is evolving to offer more to a wider range of customers through "disciplined estate expansion".
It stated that its operation costs have been well managed in the current year and its expectations remain unchanged.
Following the announcement, shares in Greggs increased by over 7%. However, this follows a drop of over 38% in the year to date.
Senior equity analyst at Hargreaves Lansdown, Matt Britzman, said that the latest trading update has raised question marks around expectations for the full year.
He concluded: "Management isn’t waving the white flag just yet, with the full-year outlook unchanged. But this quarter was about weathering the bumps rather than breaking records - a far cry from the Greggs of 2024.
"Longer term, the ingredients for growth are still in the mix. Expanding into supermarkets and online through Bake at Home, plus major supply chain upgrades, should set the stage for the next leg from 2026. Cost pressures are easing slightly, which helps, but today’s update is a reminder that even a category leader isn’t immune to short-term headwinds. For investors, the steady ship has been rocked this year, and the outlook has shifted to a slow rise rather than a rapid bake - but there is still an attractive recipe lurking beneath the surface."
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