Finance
UK's Greggs falters on subdued consumer confidence
Published by Global Banking & Finance Review®
Posted on January 8, 2026
2 min readLast updated: January 20, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on January 8, 2026
2 min readLast updated: January 20, 2026
Greggs warns of flat profits due to low consumer confidence, despite a Christmas sales boost. Shares fell 7% as analysts downgraded forecasts.
By Sarah Young
LONDON, Jan 8 (Reuters) - Greggs, Britain's biggest fast food chain, warned subdued consumer confidence meant profit would be flat this year, despite a pick-up in sales in its Christmas quarter, hitting its shares.
The bakery chain, known for its sausage rolls, steak bakes and vegan alternatives, reported underlying sales growth of 2.4% for last year, a decline from 5.5% in 2024 and 13.7% in 2023, and said consumers would continue to struggle this year.
"The mood music last year wasn't a positive one so I think that played into the consumer feeling under pressure," Chief Executive Roisin Currie told Reuters on Thursday.
"That's why we're being cautious about 2026."
Shares in the company lost 7% in mid-morning deals, having risen 25% in the run up to Christmas from a four-year low in November. Analysts said they would downgrade future profit forecasts after the update which was called "underwhelming" by Panmure Liberum.
In its Christmas quarter, Greggs posted underlying sales growth of 2.9%, improving from the previous period when they were up 1.5%, putting it on track to deliver 2025 pretax profit in line with a consensus forecast of 173 million pounds.
For 2026, Greggs is expecting profit at a similar level, and Currie said she expected new pizza flavours plus demand for Mac & Cheese and chicken goujons to help drive sales.
The slowdown at Greggs' has led some analysts to say that Britain may have hit "peak Greggs" after rapid expansion in recent years.
But the company has said it still planns to grow its footprint. It currently has 2,739 shops, compared to McDonald's which has more than 1,450.
(Reporting by Sarah Young, Editing by Paul Sandle)
Retail trade refers to the sale of goods and services to consumers for personal use. It encompasses various businesses, including stores, online shops, and service providers.
The UK economy is the economic system of the United Kingdom, characterized by a mix of private and public enterprise, with significant contributions from services, manufacturing, and agriculture.
Consumer perception is how individuals view and interpret a brand, product, or service based on their experiences, beliefs, and marketing influences.
Corporate profit is the financial gain a company makes after subtracting all expenses from its total revenue. It reflects the company's efficiency and profitability.
The financial community consists of individuals and institutions involved in finance, including banks, investors, analysts, and regulatory bodies, who interact in financial markets.
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