Greggs, a popular chain of sausage roll outlets, has affirmed its commitment to its expansion plans despite a decrease in annual profits.
The bakery chain disclosed that it managed to open a net total of 121 new stores in 2025, reaching a total of 2,739 locations by the end of the year, with a target of approximately 120 more store openings in the current year. Greggs aims to surpass 3,000 stores in the UK in the long run.
However, the company reported a 17.9% decline in statutory pre-tax profits to £167.4 million for the year ending on December 27. Underlying profits also fell by 9.4% to £171.9 million, with the management not anticipating a recovery in 2026. Greggs attributed the profit drop to increased fixed costs related to manufacturing, logistics, technology capacity, and declining sales in existing stores. Despite the challenges, Greggs’ total revenue rose by 6.8% to £2.15 billion, with a modest 2.4% increase in sales from stores open for at least a year.
Greggs noted a mere 1.6% growth in revenue from stores open for at least a year during the initial nine weeks of the current year.
While Greggs is widely recognized for its presence on high streets, many of its new stores are located in various other places such as petrol stations, supermarkets, retail parks, hospitals, and university campuses. The chain also expanded its reach by opening new outlets at Manchester Airport and railway stations in Leeds, Dartford, and St Pancras in London.
Responding to changing consumer trends and increased demand for healthier options, Greggs mentioned adapting to emerging dietary preferences for increased protein, more fiber, and smaller portion sizes. The company expressed confidence in its ability to evolve its menu to cater to customers seeking different nutritional profiles and portion sizes when dining out.
Greggs expressed optimism about potential relief from inflationary pressures that have raised costs and led to price hikes. The chain recently increased prices on various menu items, including its popular sausage roll and latte. Roisin Currie, Greggs’ chief executive, highlighted the brand’s resilient performance in 2025 and emphasized the strategic focus on expanding access to Greggs through new store openings and enhanced customer engagement via the Greggs app.
Moreover, Greggs announced employee benefits for its 33,000-strong workforce, including opportunities to participate in sharesave and profit-sharing schemes. Analysts, including Darren Shirley from Shore Capital and Aarin Chiekrie from Hargreaves Lansdown, shared insights on Greggs’ performance and future growth prospects, acknowledging the company’s efforts to adapt to evolving consumer preferences and market conditions.
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