Newcastle-based Greggs said its 2025 underlying profit before tax fell 9.4% to £171.9 million despite total sales rising 6.8% to £2.151 billion.
Nonethless, Greggs maintained it has a “clear opportunity for significantly more than 3,000 UK shops over longer term.”
Greggs reported 121 net openings in 2025, growing its estate to 2,739 shops, and it is targeting around 120 net openings in 2026.
Total dividend per share will be 69p per share, maintained at 2024 level.
On current trading Greggs said: “Like-for-like sales in company-managed shops increased by 1.6% year-on-year in the first nine weeks of 2026, with total sales increasing 6.3% and strong cost control supporting profit conversion.
“Full year guidance unchanged — expect to deliver profits at a similar underlying level to 2025, with any year-on-year improvement contingent on a recovery in the consumer backdrop.”
Greggs CEO Roisin Currie said: “Greggs delivered a resilient performance in 2025, growing market share, alongside continued strategic progress.
“Looking into 2026, easing inflationary pressures should provide some support to consumer spending and demand for convenient food-on-the-go continues to underpin the market. We remain focused on broadening access to Greggs with a strong pipeline of shop openings, exciting launches and deeper customer engagement via the Greggs App.
“We have a clear formula for long-term success, leveraging our value leadership, vertical integration, breadth of range and strong track record of innovation. Together, these strengths give us a clear competitive advantage and position us well to deliver further sustainable growth.”
Aarin Chiekrie, equity analyst, Hargreaves Lansdown, said: “Greggs served up a strong finish to the year, with sales growth accelerating in the final quarter as customers tucked into more of its freshly baked goods.
“This comes as the group’s new scooped up market share, helped by improved menus, later opening hours, and 121 net new store openings over the year, although the latter was a touch lower than originally planned.
“But the cost picture has been a major challenge, largely driven by a handful of unhelpful changes to tax rules and minimum wages. Alongside that, setting up two new distribution centres in 2025 has been costly, and altogether, it’s led to full-year operating profits falling 4.0% to £188mn.
“Despite the challenges, Greggs is working hard to build the foundations for future growth. The number of shops is set to rise from 2,739 to around 3,000 over the next few years as it looks to become more accessible to more people.
“Menus are being adapted to changing customer preferences, and shops are staying open later to cash in on more evening customers – the group’s fastest growing day-part. In fact, nearly 75% of its stores are now open beyond 5pm.
“The balance sheet is in a good position, and plenty of liquidity on hand. With cost inflation set to ease this year, guidance for underlying profits to remain broadly flat looks a touch conservative.
“Especially given that peak investment in building out its infrastructure for future growth has passed. As long as conditions don’t sour too much for the UK consumer, there could be more than tasty treats in store for Greggs.”