Underlying revenues at Greggs the bakery chain rose 0.6 per cent on a like for like basis in the 18 weeks to 8 May, the company said. Total sales were also up 2.6 per cent in the period.

Since launching a new morning breakfast offer and an advertising campaign in February, Greggs has sold two million breakfasts to customers at its 1,400 stores. Greggs is also due to open another 50 to 60 stores this year, in addition to refitting 120 stores.

Derek Netherton, Chairman of Greggs, said, "Our financial position remains strong and we are well placed to deliver further growth in 2010."

Ken McMeikan, Chief Executive Officer, said, "What the UK public need from us as a company is to really work hard to try and continue offering great value because we know there is uncertainty around jobs, there is concern around potential tax rises."

"The unknown at the moment for us is what decisions will be taken [by the new coalition government] and what impact that will have on both consumer confidence and consumer spending."