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 locations to 2,739 by the end of the year. They aim to open approximately 120 more stores this year, with a long-term goal of exceeding 3,000 UK shops.
However, the company reported a 17.9% drop in statutory pre-tax profits to £167.4 million for the year ending December 27. Underlying profits also fell by 9.4% to £171.9 million, with expectations of no significant improvement in 2026. Greggs attributed the decrease to increased fixed costs related to manufacturing, logistics, and technology capacity, along with declining sales in existing stores. Despite this, overall revenue grew by 6.8% to £2.15 billion, while sales in stores open for at least a year increased by 2.4%.
Sales in stores operating for at least a year saw a modest 1.6% growth in the first nine weeks of the current year. Greggs’ expansion strategy includes opening new stores in various locations beyond the traditional high street, such as petrol stations, supermarkets, retail parks, hospitals, and university campuses. Additionally, they recently opened shops at Manchester Airport and several railway stations.
Responding to changing consumer preferences and increased demand for healthier options, Greggs is adapting its product range to offer more choices in areas like protein, fiber, and smaller portions. The company is optimistic that inflationary pressures impacting costs and prices may ease in the future.
Roisin Currie, Greggs’ chief executive, expressed confidence in the company’s performance, emphasizing a focus on expanding access through new store openings and enhancing customer engagement. Greggs also announced employee benefits, including a sharesave scheme and profit-sharing opportunities for its workforce.
Analysts noted the challenges faced by Greggs as trading slowed, but acknowledged the company’s efforts to drive future growth through store expansions, menu adaptations, and extended operating hours to attract more customers. With a strong balance sheet and cost inflation expected to alleviate, Greggs is poised for potential growth opportunities in the market.