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 store count to 2,739 by the end of the year. It aims to open approximately 120 more stores this year with the goal of surpassing 3,000 UK locations in the long term.
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 fell by 9.4% to £171.9 million, with no expected improvement in 2026. The company attributed the decline to increased fixed costs in manufacturing, logistics, and technology, along with reduced sales from 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%.
Greggs noted a modest 1.6% growth in sales from stores open for at least a year in the first nine weeks of the current year. The chain’s expansion strategy includes opening new stores in various locations such as petrol stations, supermarkets, retail parks, hospitals, and university campuses, along with recent openings at transportation hubs like Manchester Airport and railway stations in Leeds, Dartford, and St Pancras in London.
Responding to evolving consumer preferences and increased demand for healthier options, Greggs highlighted plans to offer more diverse menu choices catering to nutritional needs and portion sizes. The company expressed optimism that inflationary pressures impacting costs could ease in the future.
Roisin Currie, Greggs’ CEO, emphasized the company’s resilient performance in 2025 and strategic growth. She anticipates support from easing inflation and sustained demand for convenient food options. Greggs also announced employee benefits, including a sharesave scheme and profit-sharing opportunities for its workforce.
Analysts provided mixed views on Greggs’ performance, with one describing it as “little to shout about,” while another praised the company’s efforts to adapt to changing market dynamics and expand its reach. With plans to increase the number of stores and adjust menus to meet customer preferences, Greggs aims to capitalize on growth opportunities and maintain financial stability amid market challenges.