Greggs (LSE:GRG) reported full-year 2025 sales growth of 6.8% to £2.15bn, with like-for-like sales in company-operated shops rising 2.4%. The performance outpaced a challenging UK food-to-go market, with the group gaining visit share across key dayparts, particularly breakfast and evening. Trading was delivered against a backdrop of subdued consumer confidence and some weather-related disruption.
Cost control remained a key focus, with operational discipline and structural efficiencies delivering around £13m in savings during the year. Greggs continued to expand its footprint at pace, opening 207 shops and adding 121 net new locations, taking the estate to 2,739 sites. Growth was supported by ongoing product innovation, targeted promotions and a strong value proposition.
The group is also making significant investments in supply chain infrastructure to support future growth. A new frozen product manufacturing facility in Derby is scheduled to begin phased operations from mid-2026, while a national chilled and ambient distribution centre in Kettering remains on track for completion in 2027. Management said capital expenditure has now passed its peak and is expected to fall sharply from 2026 onwards, supporting improved cash generation from a year-end net cash position of £47m.
Looking ahead, Greggs expects profit before tax for 2025 to be in line with previous guidance, excluding a one-off sales tax item. For 2026, profits are expected to be broadly similar to 2025, as lower cost inflation, continued market share gains and estate growth are balanced against ongoing consumer pressure and temporary margin dilution associated with bringing new supply chain capacity on stream.
From a market perspective, Greggs’ outlook is underpinned by strong financial performance and a series of positive corporate developments. Technical indicators support a bullish view, while valuation appears fair, offering a balanced mix of growth and income potential.
More about Greggs plc
Greggs plc is a UK-based food-to-go retailer operating a large estate of company-managed and franchised outlets nationwide. The group specialises in affordable, bakery-led food such as breakfast items, sandwiches, pizzas and seasonal products, targeting value-conscious consumers and high-footfall locations. Greggs continues to expand into new formats and under-served catchments as it seeks to grow its market presence across the UK.
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