Sausage roll chain Greggs remains committed to its expansion plans despite reporting a decline in annual profits. The bakery chain disclosed that it added a net of 121 new stores in 2025, bringing its total store count to 2,739 by the end of the year. Greggs aims to open approximately 120 more stores this year in line with its goal of surpassing 3,000 UK locations in the long term.
However, the company faced a drop in profits, with statutory pre-tax profits decreasing by 17.9% to £167.4 million for the year ending December 27. Underlying profits also fell by 9.4% to £171.9 million, and the company does not anticipate a significant improvement in 2026. Greggs attributed the profit decline to increased fixed costs related to manufacturing, logistics, and technology capacity, as well as reduced sales on a volume basis from existing stores. Despite this, total revenue grew by 6.8% to £2.15 billion, while revenue from stores open for at least a year increased by 2.4%.
Greggs reported a modest 1.6% growth in revenue from stores open for at least a year in the first nine weeks of the current year. The chain’s expansion strategy includes opening new stores in various locations such as petrol stations, supermarkets, retail parks, hospitals, and university campuses, including recent openings at Manchester Airport and railway stations in Leeds, Dartford, and St Pancras in London.
Responding to evolving consumer trends and increased demand for healthier options, Greggs highlighted a shift in dietary preferences among customers seeking more protein, fiber, and smaller portion sizes. The company expressed confidence in adapting its menu to cater to these changing preferences for out-of-home dining.
The company expects some relief from inflationary pressures, which have led to cost increases and subsequent price adjustments. Greggs recently raised prices on several menu items, including its popular sausage roll and latte. Roisin Currie, Greggs’ CEO, expressed optimism about the future, citing improving economic conditions and sustained demand for convenient food options.
In addition to business performance, Greggs announced employee benefits, including opportunities for staff to invest in company shares at a discount through a sharesave scheme and participation in a profit-sharing program. Analysts, while acknowledging the challenges faced by Greggs, noted the company’s efforts to adapt to consumer preferences, expand its store network, and enhance profitability. They anticipate positive growth prospects for Greggs, supported by its strategic initiatives and favorable market conditions.