Greggs, a popular sausage roll chain, remains committed to its plan of opening new stores despite a decline in annual profits. In 2025, the bakery chain expanded by adding 121 net new branches, reaching a total of 2,739 locations by the year-end. The company aims to open approximately 120 more stores this year as part of its goal to surpass 3,000 UK shops in the long term.
However, Greggs reported a drop in pre-tax profits for the year, with statutory profits falling by 17.9% to £167.4 million. Underlying profits also decreased by 9.4% to £171.9 million, with no expected improvement in 2026. The company attributed the profit decline to increased fixed costs related to manufacturing, logistics, technology capabilities, and reduced sales in existing stores. Despite this, overall revenue for Greggs increased by 6.8% to £2.15 billion, while like-for-like sales rose by 2.4%.
Greggs noted 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 strategy includes new store locations beyond traditional high streets, such as petrol stations, supermarkets, retail parks, hospitals, and university campuses. Additionally, new outlets have been opened at transportation hubs like Manchester Airport, Leeds and Dartford railway stations, and St Pancras railway station in London.
Responding to evolving consumer preferences and increased demand for healthier options, Greggs highlighted plans to offer a wider range of products to cater to changing dietary needs. The company is optimistic that inflationary pressures affecting costs and prices may ease in the near future. Recent menu price adjustments included popular items like the sausage roll and latte.
Roisin Currie, Greggs’ CEO, expressed confidence in the company’s performance, emphasizing their strategic progress and market share growth. The firm also announced employee benefits, including a sharesave scheme and profit-sharing opportunities for its workforce.
Market analysts provided varying perspectives on Greggs’ performance, with observations on sales growth, strategic initiatives, and future prospects. Despite challenges, Greggs is focused on expanding its store network, adapting menus, and enhancing customer engagement to drive future growth and profitability. The company’s financial position and strategic direction indicate potential for continued success, especially with expectations of easing cost pressures and ongoing efforts to meet changing consumer needs.