Sausage roll chain Greggs remains committed to its expansion plans despite a decrease in annual profits. The popular bakery chain disclosed a net addition of 121 stores in 2025, bringing its total locations to 2,739 by the end of the year. With aspirations to surpass 3,000 UK shops in the long run, Greggs aims to open approximately 120 more stores this year.
Although Greggs reported a 17.9% drop in statutory pre-tax profits to £167.4 million and a 9.4% decline in underlying profits to £171.9 million for the year ending December 27, the company attributed this decline to increased fixed costs in manufacturing, logistics, technology capacity, and reduced sales in existing stores. Despite the challenges, the chain’s overall revenue grew by 6.8% to £2.15 billion, with store revenue increasing by 2.4%.
Greggs noted a modest 1.6% growth in revenue from stores open for at least a year in the first nine weeks of the current year. While predominantly known for high street locations, Greggs has expanded its presence to diverse sites such as petrol stations, supermarkets, retail parks, hospitals, and university campuses. Notably, new outlets have been established at Manchester Airport, Leeds and Dartford railway stations, and St Pancras railway station in London.
The company is adapting to changing consumer preferences and a rising demand for healthier options. Greggs anticipates evolving its menu to cater to customers seeking increased protein, more fiber, and smaller portion sizes when dining out. The firm is optimistic that inflationary pressures, which led to recent price hikes, may ease, providing some relief for consumers.
Roisin Currie, Greggs’ chief executive, expressed confidence in the company’s resilience and strategic progress in 2025, emphasizing the focus on expanding access through new store openings and enhanced customer engagement. Greggs also announced employee benefits, offering staff opportunities to participate in sharesave and profit share schemes.
Analysts reviewing Greggs’ performance noted a slowdown in trading but acknowledged the chain’s efforts to drive future growth. With plans to increase the number of stores, adapt menus, and extend operating hours, Greggs is positioning itself for continued success, leveraging a strong financial position and consumer trends to navigate challenges in the market.