Greggs, the beloved bakery chain, is facing a financial rollercoaster, leaving many wondering if its popularity has peaked. But is this just a temporary dip or a sign of changing consumer habits?
The Profits Plunge:
Greggs' latest financial report reveals a staggering 17.9% drop in pre-tax profits, totaling £167.4 million for the year ending December 27, 2025. This decline is attributed to a challenging market environment that has impacted consumer confidence and spending power.
But here's where it gets controversial: Greggs' CEO, Roisin Currie, remains optimistic, stating that the company has historically overcome downturns. She dismisses the notion of 'peak Greggs', believing there's more growth ahead. However, with rising living costs, higher taxes, and a shift towards health-conscious choices, some analysts question if Greggs can maintain its momentum.
Sales Slowdown:
The bakery giant also experienced a slowdown in sales growth at the start of 2026. This is partly blamed on the hot weather, which reduced footfall on the high street. Yet, Greggs' expansion plans remain ambitious, with 121 new stores opened in 2025, bringing the total to 2,739. They aim to surpass 3,000 UK shops in the long term.
Strategies for Growth:
To combat the sales slump, Greggs is adapting its menu to cater to evolving customer preferences and extending opening hours to capture the growing evening trade. These strategies have shown promise, with like-for-like sales increasing by 1.6% in the first nine weeks of 2026.
Divided Opinions:
Analysts offer differing views on Greggs' future. While some highlight the company's resilience and growth potential, others, like Shore Capital's Darren Shirley, are less enthusiastic about its prospects. Hargreaves Lansdown's Aarin Chiekrie acknowledges the challenges but praises Greggs' efforts to future-proof its business.
As Greggs navigates this financial hurdle, the question remains: Can it reclaim its former glory, or is the market becoming too saturated for this bakery giant to maintain its dominance? Share your thoughts on this tasty debate!
