Is 'Peak Greggs' a reality? The beloved bakery chain's profits take a hit as sales slow down, leaving consumers and investors alike wondering if the golden era of Greggs is coming to an end.
The high street staple, renowned for its mouth-watering sausage rolls and steak bakes, has reported a 17.9% drop in statutory pre-tax profits to £167.4 million for the year ending December 27th. This comes as a surprise to many, as Greggs has long been a symbol of British resilience and affordability.
But what's causing this sudden slump? The answer lies in the challenging market conditions affecting consumer confidence and disposable income. Rising costs of living, higher taxes, and the increasing popularity of weight-loss treatments have all contributed to a cautious shopping environment.
Despite these headwinds, Greggs CEO Roisin Currie remains optimistic. She firmly believes that the company has not reached its peak and has a proven track record of bouncing back from downturns. Currie attributes the current challenges to external factors and expresses confidence in the company's ability to navigate through them.
However, the company acknowledges the tough market backdrop and a particularly hot summer, which negatively impacted footfall on the high street. Greggs has been proactive, expanding its store network and adapting its menus to cater to changing customer preferences. The group's commitment to accessibility is evident, with plans to increase the number of shops from 2,739 to around 3,000 over the next few years.
The future looks promising, with Greggs' delivery business and evening trade showing strong growth. Like-for-like sales across managed shops have increased by 1.6% in the first nine weeks of 2026, and total sales are up 6.3% due to new store openings. Despite the short-term challenges, Greggs is poised for long-term growth, leaving analysts divided on its future prospects.
