Is 'Peak Greggs' a Reality? The Bakery Chain's Profits and Sales Face a Slump
The beloved British bakery chain, Greggs, is facing a challenging period as it grapples with a decline in profits and sales. The company, renowned for its mouth-watering sausage rolls and steak bakes, has attributed this downturn to a combination of factors, including a cautious consumer market and the impact of hot weather. Despite these obstacles, Greggs remains optimistic about its long-term prospects, with plans to expand its store network and adapt to changing customer preferences.
In the year ending December 27, 2025, Greggs reported a 17.9% drop in statutory pre-tax profits, falling to £167.4 million. This decline is attributed to a slowdown in sales growth during the start of the new year, with like-for-like sales growth of only 1.6% over the first nine weeks of 2026. The company's sales totalled £2.15 billion, a 6.8% increase from the previous year, largely driven by its successful store opening program.
The bakery chain's challenges are multifaceted. Rising living costs, higher tax and labor expenses, and the widespread adoption of weight-loss treatments have contributed to a cautious consumer market. However, Greggs CEO, Roisin Currie, remains steadfast in her belief that the company has not reached 'peak Greggs.' She highlights the company's resilience, drawing on past downturns as evidence of its ability to bounce back.
Despite the current market pressures, Greggs is confident that 'easing inflationary pressures' will stimulate stronger consumer spending. The company's focus on expanding its delivery business and increasing evening trade is expected to support sales growth. Greggs aims to open approximately 120 new stores this year, targeting a significant expansion to over 3,000 UK shops in the long term.
Analysts have varying opinions on Greggs' future. While some express disappointment over slowing sales, others emphasize the company's efforts to build a strong foundation for future growth. With a focus on accessibility, menu adaptation, and extended operating hours, Greggs is poised to cater to changing customer preferences. The company's commitment to resilience and innovation positions it for continued success in the competitive bakery market.
