Greggs helped by strong breakfast sales

Greggs store
Image caption Greggs said it expected consumer spending to remain constrained going forward

Strong demand for its breakfast range has helped Greggs report a small rise in sales, despite "an increasingly challenging trading environment".

The UK's largest bakery chain said like-for-like sales - which excludes new store openings - for its third quarter ending 2 October rose 0.2%.

Greggs said its breakfast bacon roll was now its best-selling sandwich.

It is now adding more breakfast products, including croissants and pains au chocolat.

The 0.2% rise in Greggs' sales for the third quarter was down from the 0.7% growth seen in the first half of its financial year.

Greggs chief executive Ken McMeikan said: "As we expected, the trading environment has been tough and is likely to remain so, with consumer spending continuing to be constrained and inflationary pressures building for next year.

"We anticipate that like-for-like sales in the final quarter will be broadly flat and therefore marginally positive over the year as a whole."

He added that the company was keeping a "very tight focus" on costs.

Greggs currently operates 1,451 shops. It said that its expansion programme was on track, having opened a net 32 new shops in the year to date.

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