Greggs (LSE:GRG) delivered solid top-line growth in 2025 despite a challenging food-to-go environment, with total sales increasing 6.8% to £2.15 billion. Underlying profit before tax declined 9.4%, reflecting ongoing consumer pressure and significant investment across the business.
Margins came under strain during the year, but cash generation remained robust. The company maintained its dividend at 69 pence per share and finished the period with net cash of £45.8 million, even after substantial capital expenditure on supply chain infrastructure.
Market share continued to expand, with Greggs accounting for 8.6% of UK food-to-go visits, reinforcing its leadership as a value-focused brand in the segment. The estate grew by a net 121 shops to 2,739 locations. The group also expanded its delivery offering, increased loyalty app engagement and developed its evening trade. Major logistics investments are underway to support a future estate of more than 3,500 shops and to drive a longer-term improvement in returns on capital.
Trading in early 2026 has remained steady, with like-for-like sales up 1.6% and total sales ahead 6.3%. Management indicated that profits are expected to remain broadly in line with 2025 unless consumer conditions improve. Continued investment in distribution capacity, digital capabilities and product innovation is designed to strengthen Greggs’ competitive positioning and underpin sustainable growth.
From an investment perspective, Greggs benefits from resilient financial performance and supportive corporate developments. Technical indicators suggest a constructive trend, while valuation appears balanced, offering a mix of growth exposure and income appeal.
More about Greggs plc
Greggs plc is a UK-based food-to-go retailer known for its bakery items, sandwiches, snacks and hot beverages. The company operates a large network of company-managed and franchised stores, positioning itself as a value-led brand serving convenience-focused customers throughout the day. In addition to its core shop estate, Greggs is expanding through delivery services, evening trading and grocery retail partnerships.
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