Greggs has reported a 3.3 per cent rise in sales in recent weeks, helped by the launch of its new chicken roll, but warned prolonged conflict in the Middle East could push up food inflation.

The FTSE 250 bakery chain said the chicken roll, launched in April, had quickly become a “customer favourite” and was a standout performer in the year so far.

The new product rounds out Greggs’ roll range alongside its classic sausage roll and vegan sausage roll, as the business continues to expand its menu beyond its traditional bakery offer.

Greggs has also seen positive customer reaction to recent launches including matcha drinks and tandoori chicken pizza, as chief executive Roisin Currie continues to push a broader food-to-go proposition.

The company said year-on-year sales increased 3.3 per cent in recent weeks, while it has opened 20 new shops so far this year.

Greggs is targeting 120 net new shops in 2026 as it continues its store expansion programme. The Newcastle-based business currently operates 2,759 stores across the UK.

However, the group warned that it could face higher cost inflation if the Middle East conflict continues.

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“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,” the company said.

Greggs said it remained protected by fixed terms on 85 per cent of its energy requirements for this year and 50 per cent of next year’s needs, and maintained its profit guidance.

The update comes after concerns among investors that the business could be approaching “peak Greggs”, following rapid expansion and pressure from rising employment costs.

Earlier this year, Greggs became one of the most-shorted stocks on the FTSE, as analysts questioned whether the chain could continue to grow at pace without diluting its appeal.

Freetrade analyst Duncan Ferris said headwinds remained, including a difficult consumer backdrop and the risk of higher cost inflation linked to the Middle East conflict.

“But, in spite of concerns the country had reached its sausage roll saturation point, perhaps we are not quite at ‘peak Greggs’ just yet,” he said.