Greggs has reported a 17.9% fall in statutory pre-tax profit to £167.4m in its latest annual results, as the bakery chain cited a “challenging food-to-go market”.

The company also announced a sales slowdown to start the 2026 financial year, with like-for-like sales in company-managed shops increasing by 1.6% year-on-year in the first nine weeks of 2026.

This was down from the 2.4% like-for-like sales growth that Greggs announced across the year to 27 December 2025. The bakery chain’s total sales in 2025 reached £2.15bn, which was up by 6.8% on 2024, however.

Greggs said it was expecting consumer sentiment to “continue to be a headwind” in 2026, as it left its full-year guidance unchanged. The company said it would deliver profits at a “similar underlying level” to 2025, with any year-on-year improvement contingent on a “recovery in the consumer backdrop”.

Chief executive, Roisin Currie, commented that Greggs delivered a “resilient performance” in 2025, by 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,” Currie said.

“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.”

Following the release of its results this morning, Greggs saw its share price dip by 2% before making a recovery later in the day.

Equity analyst at Hargreaves Lansdown, Aarin Chiekrie, noted that costs had been a “major challenge” for Greggs, which he added was largely driven by a “handful of unhelpful changes to tax rules and minimum wages”.

“Despite the challenges, Greggs is working hard to build the foundations for future growth,” he added.

“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.”

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