Greggs, a popular chain known for its sausage rolls, remains committed to its expansion plans despite a decrease in annual profits. The bakery chain added a net of 121 new branches in 2025, bringing its total number of stores to 2,739. It aims to open approximately 120 more stores this year with a long-term goal of surpassing 3,000 locations in the UK.
However, Greggs reported a decline in both statutory pre-tax profits, down by 17.9% to £167.4 million, and underlying profits, which fell by 9.4% to £171.9 million for the year ending December 27. The company attributed this decrease to increased fixed costs related to manufacturing, logistics, and technology, as well as reduced sales volume from existing stores. Despite this, overall revenue grew by 6.8% to £2.15 billion, with same-store sales increasing by 2.4%.
In the first nine weeks of the current year, sales from existing stores only saw a modest 1.6% growth. While Greggs is typically associated with high street locations, many of its new outlets are now found in diverse settings like petrol stations, supermarkets, retail parks, hospitals, and university campuses. The chain also expanded to transportation hubs such as Manchester Airport, Leeds and Dartford railway stations, and St Pancras station in London.
Responding to changing consumer trends and demand for healthier options, Greggs acknowledged shifts in dietary preferences towards more protein, fiber, and smaller portion sizes. The company expressed confidence in adapting its menu to cater to these evolving preferences and nutritional needs.
Looking ahead, Greggs anticipates relief from inflationary pressures that have impacted costs and led to price adjustments. The company recently confirmed price hikes on several menu items, including its popular sausage rolls and lattes. Roisin Currie, Greggs’ chief executive, highlighted the firm’s resilience in 2025 and emphasized plans for continued growth, increased customer engagement through the Greggs app, and ongoing store expansions.
Furthermore, Greggs announced employee benefits including sharesave schemes and profit-sharing initiatives for its workforce. Analysts have varied opinions on the company’s performance, with some highlighting the need for continued adaptation to changing consumer preferences and extended operating hours to attract more customers. Overall, the outlook for Greggs remains positive as it seeks to enhance accessibility, menu offerings, and profitability in the coming years.