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—from soaring living costs to shifting consumer habits. Could this be the beginning of the end, or just a temporary stumble? Let’s dive in.
The Numbers Don’t Lie
Greggs recently reported a 17.9% plunge in statutory pre-tax profits, falling to £167.4 million for the year ending December 27. That’s a significant drop compared to the previous year. Sales growth has also slowed, particularly at the start of 2026. But this isn’t just about numbers—it’s about what they reveal about the broader economic landscape. Rising costs, cautious consumers, and even the growing popularity of weight-loss treatments have all taken a toll on the bakery giant.
And this is the part most people miss: Greggs isn’t just battling external pressures; it’s also fighting to prove that it hasn’t reached its peak. Last year, CEO Roisin Currie boldly declared, ‘I absolutely don’t believe we have reached peak Greggs,’ pointing to the company’s history of bouncing back from downturns. But with grocery inflation creeping up and global tensions threatening to push prices even higher, is optimism enough?
The Resilience Factor
Despite the challenges, Greggs isn’t throwing in the towel. The company employs over 33,000 people and has stressed its ‘resilience’ in the face of adversity. It’s banking on easing inflationary pressures to boost consumer spending in 2026. Plus, its expansion plans are still in full swing, with 121 new stores opened in 2025 and ambitions to grow to over 3,000 UK locations long-term. Delivery services and extended evening hours are also helping to keep sales afloat.
The Controversial Counterpoint
But here’s the kicker: not everyone is convinced. Analysts are split on Greggs’ long-term prospects. While some, like Aarin Chiekrie of Hargreaves Lansdown, applaud the company’s efforts to adapt—such as menu tweaks and longer opening hours—others, like Darren Shirley of Shore Capital, see little to celebrate as trading slows. Is Greggs spreading itself too thin, or is this strategic growth? We want to hear from you—do you think Greggs can reclaim its former glory, or is this the start of a decline?
Looking Ahead
Greggs is betting on convenience and accessibility to win the day. With nearly 75% of its stores now open past 5 PM and a focus on catering to evening customers, it’s clear the company isn’t resting on its laurels. But as Currie herself admits, ‘The backdrop is still tough out there.’ Whether Greggs can weather this storm remains to be seen. One thing’s for sure: this is a pivotal moment for the bakery chain—and we’ll all be watching closely. What’s your take? Let us know in the comments below!
