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Greggs Posts Sales Rise as Like-for-Like Growth Softens, Shares Slide on Profit Caution

The bakery flagged a modest reduction in operating profit, with a £4.5m VAT error set to further dent reported results.

Overview

  • Total sales rose 7.4% in the Christmas quarter, lifting annual revenue about 6.8% to roughly £2.15bn.
  • Company-managed like-for-like sales grew 2.9% in Q4, underscoring reliance on new shop openings for growth.
  • Management guided to a modest year-on-year decline in operating profit, separate from the newly disclosed £4.5m VAT accounting mistake.
  • Shares fell around 7%–8% on Thursday, with the stock remaining heavily shorted at roughly 11%–12% of shares on loan.
  • Greggs opened 207 shops in 2025 and plans around 120 net new sites in 2026, while targeting lower capital spending and pursuing £13m in annual cost efficiencies as consumers cut back.