Greggs, a popular chain known for its sausage rolls, remains committed to its expansion plans despite a decline in annual profits. In 2025, the bakery chain added a net total of 121 new stores, bringing its total locations to 2,739 by year-end. Greggs aims to open approximately 120 more stores this year as part of its goal to exceed 3,000 UK locations in the long run.
The company reported a 17.9% drop in statutory pre-tax profits to £167.4 million for the year ending December 27. Underlying profits also fell by 9.4% to £171.9 million, with no expected improvement in 2026. Greggs attributed the decrease to increased fixed costs in manufacturing, logistics, and technology, along with declining sales at existing stores. Despite the challenges, opening more stores contributed to a 6.8% growth in overall revenue to £2.15 billion, while revenue from existing stores rose by 2.4%.
Greggs noted a modest 1.6% increase in revenue from stores open at least a year during the first nine weeks of the current year. While traditionally found on high streets, Greggs has expanded to various locations such as petrol stations, supermarkets, retail parks, hospitals, and university campuses. The chain also opened new shops at Manchester Airport, Leeds and Dartford railway stations, and St Pancras railway station in London.
The company has responded to evolving consumer preferences, including a growing demand for healthier options. Greggs acknowledged the trend towards increased protein, more fiber, and smaller portion sizes, expressing confidence in adapting its menu to cater to changing nutritional needs.
Looking ahead, Greggs anticipates relief from inflationary pressures that have led to price hikes. The company recently increased prices on some menu items, including the popular sausage roll and regular latte. Roisin Currie, Greggs’ CEO, expressed optimism for the future, highlighting plans for continued expansion, new product launches, and enhanced customer engagement through the Greggs app.
In a positive move for its workforce, Greggs announced benefits for its 33,000 employees, including opportunities to purchase shares at a discount and participate in profit-sharing schemes. Analysts commented on the company’s performance, with one noting a slowdown in trading and another emphasizing the potential for growth through store expansions and menu adaptations to meet changing consumer preferences.
