Is the golden era of Greggs over? That's the question on everyone's mind as the beloved bakery chain faces a startling drop in profits and slowing sales. Known for its iconic sausage rolls and steak bakes, Greggs has long been a staple of the UK high street. But here's where it gets controversial: despite its loyal customer base, the company is now grappling with what it calls 'challenging' market conditions—a perfect storm of rising living costs, higher taxes, and even the growing popularity of weight-loss treatments. Could this be the beginning of the end, or just a temporary stumble? And this is the part most people miss: Greggs isn’t just sitting back. It’s fighting to prove that reports of its decline are greatly exaggerated.
In its latest financial report, Greggs revealed a 17.9% plunge in statutory pre-tax profits to £167.4 million for the year ending December 27th, compared to the previous year. Sales growth has also slowed, particularly at the start of 2026. But why? Over the past year, the chain has been hit hard by cautious consumers tightening their belts in response to the cost-of-living crisis. Add to that the pressures of higher labor costs and a summer of unusually hot weather that kept shoppers at home, and you’ve got a recipe for trouble.
But Greggs isn’t throwing in the towel just yet. Last year, CEO Roisin Currie boldly declared, 'I absolutely don’t believe we have reached peak Greggs.' She pointed to the company’s history of bouncing back from downturns, a sentiment that’s both reassuring and, let’s be honest, a bit optimistic. On Tuesday, the company hinted at a potential turnaround, suggesting that 'easing inflationary pressures' could boost consumer spending. However, with grocery inflation creeping back up and global tensions threatening to push prices higher, this remains a cautious hope rather than a certainty.
Despite these challenges, Greggs is stressing its resilience. Employing over 33,000 people, the chain has continued to expand, opening 121 new stores in 2025 and bringing its total to 2,739 locations. It’s aiming for another 120 openings this year, with long-term ambitions to surpass 3,000 UK shops. The company also credits its growing delivery business and extended evening hours for supporting sales growth. In fact, nearly 75% of its stores now stay open beyond 5pm, catering to the evening crowd—its fastest-growing customer segment.
But here’s the controversial bit: while Greggs is clearly adapting, some analysts aren’t convinced. Darren Shirley of Shore Capital bluntly stated there’s 'little to shout about as trading slows.' Others, like Aarin Chiekrie of Hargreaves Lansdown, argue that Greggs is laying the groundwork for future growth by expanding its store network and adapting its menu to changing tastes. So, who’s right? Is Greggs on the brink of a comeback, or is it struggling to keep up with a shifting market?
What do you think? Are Greggs’ best days behind it, or is this just a bump in the road? Let us know in the comments—we’d love to hear your take on whether the bakery giant can rise again.
