Greggs saw annual profit drop 18%, as weakening consumer sentiment and slower revenue growth weighed on the high street bakery chain.
Pre-tax profit fell to £167m in the year to 28 December 2025, including the impact of a restatement relating to value-added tax (VAT), the retailer said on Tuesday (3 March).
Trading also softened at the start of the new financial year. Like-for-like revenues were up 1.6% for the first nine weeks of 2026, marking a slowdown from stronger growth seen last year.
Shares in the business declined as much as 3.9% during early trading in London following the update. The stock has dropped by more than 25% during the past 12 months, reflecting mounting investor fears over the outlook for UK consumer spending.
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The results come after the company ended 2025 as the most-shorted stock in the UK market, with some investors questioning whether its rapid estate expansion could be sustained amid softer demand.
Greggs CEO Roisin Currie has previously defended the retailer’s long-term growth strategy, which targets over 3,000 UK stores over time.
The group plans to open an additional 120 locations this year, continuing its push into retail parks, transport hubs and drive-thru formats.
Despite its weaker profit performance, Greggs said it still expected full-year profit in 2026 to be broadly flat, although any improvement would depend on a wider recovery in consumer spending.
The food to go business also flagged a £4.5m provision relating to a historic understatement of VAT, which it said was identified internally and reported to HMRC during the year.
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