Greggs, a popular chain known for its sausage rolls, remains committed to its expansion plans despite a decline in profits. In 2025, the bakery chain added a net total of 121 new branches, bringing its total number of locations to 2,739 by the end of the year. It aims to open approximately 120 more stores in the coming year in pursuit of surpassing 3,000 shops in the long run.
The company reported a 17.9% drop in statutory pre-tax profits to £167.4 million for the year ending on December 27. Underlying profits also decreased by 9.4% to £171.9 million, with expectations of no significant improvement in 2026. Greggs attributed the profit decline to increased fixed costs related to manufacturing, logistics, and technology capacity, as well as reduced sales volume in stores open for at least a year. Despite this, the overall revenue for Greggs saw a 6.8% increase to £2.15 billion, while sales in stores open for a year or more rose by 2.4%.
Furthermore, same-store sales experienced only a 1.6% growth in the initial nine weeks of the current year. While Greggs is predominantly recognized for its presence on the high street, many new stores are located in alternative settings such as petrol stations, supermarkets, retail parks, hospitals, and university campuses. The chain also recently opened new outlets at various transportation hubs and airports.
Greggs is adapting to changing consumer preferences and a growing interest in healthier food options. The company is actively evolving its menu to cater to customers seeking increased protein, more fiber, and smaller portion sizes when dining out. Greggs expressed optimism that inflationary pressures, which led to price hikes on some menu items, may ease in the future.
Roisin Currie, the CEO of Greggs, highlighted the company’s performance in 2025 and emphasized its strategic growth plans for 2026. The chain also announced employee benefits, including share options and profit-sharing schemes for its workforce. Analysts have provided mixed reviews of Greggs’ recent financial results, with some noting a slowdown in trading activity. However, others remain positive about the company’s efforts to drive future growth through store expansion, menu adjustments, and enhanced customer engagement strategies.