High street bakery giant Greggs is poised to unveil its latest financial results, shedding light on how it is contending with a confluence of challenges, from the rise of weight loss treatments to persistent cost of living pressures on consumers.
The popular chain is also grappling with increased labour costs and impending tax changes.
These pressures are anticipated to result in a 9% drop in pre-tax profits, with Greggs forecasting approximately £173 million for the year ending December 27. The full details are expected to be announced on Tuesday, March 3.
Despite these headwinds, the company previously indicated a strong finish to 2025, with sales growth accelerating in the final quarter. Like-for-like sales growth notably climbed from 1.5% in the third quarter to 2.9% in the closing months of the year.
Totals sales were up 7.4% in the final quarter amid a boost from the group’s continued store opening programme.
The company opened 121 stores last year.
However, analysts at Deutsche Bank said expectations “have already been set low” for 2026 and are “unlikely to change”.
In January, Greggs said it was “cautious but hopeful” about its outlook for 2026, highlighting “subdued” consumer confidence.
Roisin Currie, chief executive of Greggs, also warned alongside its previous update that there was “no doubt” appetite-suppressing medication is having an impact on the bakery chain’s business.
It may provide more detail on how this continues to change customer eating habits.
Meanwhile, the group also announced that inflation was likely to be shallower than last year.
The group increased the price on a number of products and deals last year, so shareholders will also be keen to see how these changes have continued to impact trading.
Aarin Chiekrie, equity analyst at Hargreaves Lansdown, said: “Investors are keen to hear how 2026 is shaping up in the early months.
“While the picture on the cost front is beginning to look more favourable, Greggs has plenty of other challenges still to wrestle with.
“Unhelpful changes to tax rules and minimum wages, slowing UK economic growth, and cost-conscious consumers are all weighing on the outlook.”
