Greggs, a popular sausage roll chain, remains committed to its plan of opening new stores despite a decline in annual profits. The company expanded its shop network by 121 branches in 2025, reaching a total of 2,739 locations by year-end. With aims to exceed 3,000 UK shops in the long run, Greggs plans to open around 120 more stores this year.
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 no expected improvement in 2026. Greggs attributed the decrease to increased fixed costs related to manufacturing, logistics, and technology, along with reduced sales volume from existing stores. Despite this, overall revenue increased by 6.8% to £2.15 billion, while like-for-like sales rose by 2.4%.
Furthermore, Greggs revealed a modest 1.6% growth in sales from stores open for at least a year during the first nine weeks of the current year. The chain’s expansion includes new outlets in various locations such as petrol stations, supermarkets, retail parks, hospitals, and university campuses, along with recent openings at airports and railway stations.
Adapting to changing consumer preferences, Greggs noted a shift towards healthier choices and smaller portions. The company expressed confidence in adjusting its menu to cater to evolving dietary trends. Despite facing inflationary pressures, Greggs anticipates some relief and remains optimistic about consumer spending trends.
CEO Roisin Currie highlighted the company’s resilient performance in 2025, emphasizing strategic advancements and market share growth. Greggs plans to enhance customer engagement through new store launches and app features. Additionally, the company announced employee benefits, including opportunities to invest in shares and profit-sharing schemes.
Industry analysts offered mixed views on Greggs’ performance, with some acknowledging challenges in slowing trade while others praised the company’s growth strategies. With a focus on expanding accessibility, menu adjustments, and extended operating hours, Greggs aims to sustain its growth trajectory and capitalize on changing market dynamics.