Greggs, a popular chain known for its sausage rolls, remains committed to its expansion plans despite a decline in annual profits. In 2025, the bakery chain added a net of 121 new branches, bringing its total store count to 2,739 by the year’s end. It aims to open approximately 120 more stores this year with the goal of surpassing 3,000 UK locations in the long run.
However, Greggs reported a 17.9% drop in statutory pre-tax profits to £167.4 million for the year ending December 27. Underlying profits also decreased by 9.4% to £171.9 million, with no expected improvement in 2026. The company attributed the decline to increased fixed costs related to manufacturing, logistics, and technology, as well as reduced sales volume in existing stores. Despite this, total revenue rose by 6.8% to £2.15 billion, although like-for-like sales only increased by 2.4%.
In the first nine weeks of the current year, sales in stores open for at least a year only grew by 1.6%. While Greggs is predominantly found on high streets, it has been expanding to various locations including petrol stations, supermarkets, retail parks, hospitals, and university campuses. Notable new stores include those at Manchester Airport and railway stations in Leeds, Dartford, and St Pancras in London.
Responding to evolving consumer preferences, Greggs acknowledged a shift towards healthier options and smaller portions. The company anticipates catering to these trends by adjusting its menu accordingly. Additionally, Greggs hopes that recent inflationary pressures, which led to price hikes on menu items, will ease in the future.
Roisin Currie, Greggs’ CEO, expressed optimism for the year ahead, highlighting the company’s focus on enhancing customer accessibility through new store openings and improved customer engagement. The chain also announced employee benefits, including a sharesave scheme and profit-sharing initiatives.
Analysts have varied opinions on Greggs’ performance, with some noting a slowdown in trading, while others commend the company’s efforts to adapt to changing consumer demands and expand its reach. With a solid financial position and strategies in place, Greggs aims to capitalize on future growth opportunities, provided that economic conditions remain favorable for consumer spending.