Sausage roll chain Greggs remains committed to its expansion plans despite a drop in annual profits. In 2025, the bakery chain added a net total of 121 new branches, bringing its total store count to 2,739 by the end of the year. Greggs aims to open approximately 120 more stores this year as part of its long-term goal to exceed 3,000 locations in the UK.
Despite the increase in the number of stores, Greggs reported a decline in pre-tax profits for the year ending December 27. Statutory pre-tax profits fell by 17.9% to £167.4 million, while underlying profits decreased by 9.4% to £171.9 million. The company attributed the profit decline to higher fixed costs related to manufacturing, logistics, and technology, as well as decreased sales volume in existing stores. Overall, Greggs’ revenue grew by 6.8% to £2.15 billion, with sales in stores open at least a year rising by 2.4%.
Greggs saw a modest 1.6% growth in sales from stores open at least a year in the first nine weeks of the current year. The chain has been expanding beyond traditional high street locations, with new stores in petrol stations, supermarkets, retail parks, hospitals, and university campuses, as well as at transportation hubs like Manchester Airport and various railway stations.
In response to changing consumer preferences and increased demand for healthier options, Greggs is adapting its menu to offer more protein-rich, high-fiber, and smaller portion choices. The company anticipates these shifts in dietary trends and is confident in its ability to cater to diverse nutritional needs.
Despite facing inflationary pressures that led to price increases on some menu items, Greggs CEO Roisin Currie remains optimistic about the future. The company plans to focus on expanding access through new store openings, innovative launches, and enhanced customer engagement through the Greggs app.
Additionally, Greggs announced employee benefits, including a sharesave scheme and profit-sharing scheme for its workforce. Analysts view the company’s performance positively, with expectations of future growth fueled by store expansion, menu adjustments, and extended operating hours to attract more customers.
