Greggs Shares Slip Further as Profit Declines and Sales Growth Slows

Greggs (LON: GRG) shares fell around 1.2 percent on Tuesday after the company reported a slowdown in sales growth and a drop in annual profit, adding pressure to a stock that has already declined 7.1 percent year-to-date and 25.8 percent over the past 12 months.

Greggs remains the most shorted London-listed stock, with short interest standing at 13.3 percent.

Total sales for 2025 rose 6.8 percent to £2.15 billion, but like-for-like sales in company-managed shops increased just 2.4 percent, lower than the 5.5 percent growth reported in 2024.

Underlying operating profit fell 4 percent to £187.5 million, while underlying profit before tax declined 9.4 percent to £171.9 million. Statutory profit before tax dropped 17.9 percent to £167.4 million.

The company cited strong cash generation, with diluted operating cash inflow per share rising 4.6 percent, and maintained its ordinary dividend at 69p per share.

Capital expenditure peaked at £287.5 million in 2025 and is expected to fall sharply in 2026 as new logistics capacity comes online.

Greggs continued to expand its store estate, adding 121 net new shops to reach 2,739 locations, and said its delivery, loyalty app usage and evening-trading segments all grew last year. In the first nine weeks of 2026, like-for-like sales rose 1.6 percent, with total sales up 6.3 percent.

Chief Executive Roisin Currie said the company delivered “a resilient performance” in 2025 and expects 2026 profits to be broadly in line with last year, with any improvement dependent on a consumer recovery.