Greggs (LSE: GRG) used to be one of the market’s favourite growth stories. Investors loved the FTSE 250 bakery chain, and many made solid gains along the way. But the stock has since lost momentum. Sales growth has slowed, and the share price has fallen from red hot to distinctly cooler. So what changed?
Advertisement
The Newcastle-based bakery chain was once mocked for serving greasy British comfort food, then celebrated for exactly the same reason. Backed by a smart marketing strategy, Greggs expanded across the UK, moving beyond traditional high streets into shopping centres, railway stations and airports. It even benefited from the cost-of-living crisis, as consumers looked for affordable treats. But as household budgets came under pressure, its rapid sales growth began to ease.
During its strongest growth years, Greggs’ share price became rather frothy. At one point, the stock traded on a price-to-earnings ratio above 23. Today, the story looks very different. Over the past year, the Greggs share price has fallen 17%, and over five years it is down 33%. The question now is whether the sell-off has gone too far.
To some extent, I think it has.
Greggs still delivered record sales in 2025, with revenue rising 6.8% to £2.15bn. That growth was driven largely by expansion, with 121 net new shops added during the year, taking the total to 2,739. Company-managed like-for-like sales also rose 2.4%, helped by later opening hours.
