Greggs, a popular chain known for its sausage rolls, remains committed to its expansion plans despite a decrease in annual profits. The bakery chain disclosed that it increased its number of branches by a net total of 121 in 2025, reaching 2,739 locations by the year’s end. It aims to open approximately 120 more stores this year to achieve its long-term goal of exceeding 3,000 UK locations.
However, Greggs reported a 17.9% drop in statutory pre-tax profits to £167.4 million for the year ending on December 27. Underlying profits also declined by 9.4% to £171.9 million, with no anticipated improvement in 2026. The company attributed the decrease to higher fixed costs related to manufacturing, logistics, and technological capabilities, as well as reduced sales volume in existing stores. Despite the profit decline, overall revenue increased by 6.8% to £2.15 billion, while like-for-like sales grew by 2.4%.
In the first nine weeks of the current year, sales from stores open for a year or more saw a modest 1.6% increase, according to Greggs. Although recognized for its presence on high streets, the chain has expanded into various locations beyond traditional retail areas, including petrol stations, supermarkets, retail parks, hospitals, and university campuses. New outlets were also opened at Manchester Airport and railway stations in Leeds, Dartford, and St Pancras in London.
Responding to changing consumer preferences and increased demand for healthier options, Greggs acknowledged a shift towards more diverse dietary choices. The company expressed confidence in adapting its menu to cater to customers seeking options such as higher protein content, increased fiber, and smaller portion sizes when dining out.
CEO Roisin Currie highlighted the company’s resilience in 2025, emphasizing market share growth and strategic advancements. Greggs anticipates that easing inflationary pressures will support consumer spending, with the convenience of on-the-go food continuing to drive demand. The chain remains focused on expanding accessibility through new store openings, product launches, and enhanced customer engagement via the Greggs app.
Additionally, Greggs announced employee benefits for its workforce of 33,000, including sharesave and profit share schemes. The company distributed £20.2 million among staff members through the profit share program, aimed at fostering employee loyalty and engagement.
Analysts provided mixed feedback on Greggs’ performance, with comments ranging from a modest trading slowdown to optimism about future growth prospects. Despite challenges, Greggs is adapting its menu offerings and store operations to align with evolving consumer preferences and capitalize on new opportunities in the market. With a strong financial position and strategic investments in place, the company aims to sustain profitability amid changing market conditions.