Greggs profit slips hindered by market challenges and low consumer sentiment

In the 52 weeks to December 27, Greggs saw underlying profit-before-tax fall 9.4% from £189.8m to £171.9m.

Underlying operating profit also slipped 4%, but total sales did increase 6.8% from £2.01m to £2.15m.

Like-for-like sales in company-managed shops did rise 2.4% in what Greggs said was a “resilient performance against the backdrop of a tough environment.”

It is targeting 120 net openings in 2026, following 121 net openings in 2025. Delivery sales increased 8.1%.

Current trading for the first nine weeks of 2026 shows like-for-like sales in company-managed shops have risen by 1.6% year on year, with total sales increasing 6.3%.

It expects to deliver similar underlying profits for the current full year, with improvement resting on a “recovery in the consumer backdrop”.

Greggs also noted that it expects market conditions to remain challenging for consumers, and that shifts in dietary preferences, such as protein and smaller portions, will continue to be a trend as the retailer aims to keep evolving its range.

Looking ahead, it will continue to open shops, grow flexible formats, and believes inflationary pressures will slightly ease.

Greggs chief executive Roisin Currie said: “Greggs delivered a resilient performance in 2025, growing market share, alongside continued strategic progress. Looking into 2026, easing inflationary pressures should provide some support to consumer spending, and demand for convenient food-on-the-go continues to underpin the market. 

“We remain focused on broadening access to Greggs with a strong pipeline of shop openings, exciting launches, and deeper customer engagement via the Greggs app.

“We have a clear formula for long-term success, leveraging our value leadership, vertical integration, breadth of range, and strong track record of innovation. Together, these strengths give us a clear competitive advantage and position us well to deliver further sustainable growth.”