Greggs Sales ⁣Slowdown: Has the Sausage Roll Boom ⁢Peaked?

‍ ‍Updated July 02, 2025
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Greggs, the popular bakery chain, is facing investor unease after a recent ‍slowdown in sales growth.The company’s shares‍ took‍ a hit following reports indicating a deceleration to two percent, prompting questions about whether the brand has reached its saturation point in the market. This slowdown marks a stark contrast‍ to the double-digit growth the company has consistently delivered.

The ⁣Greggs’ recent trading update ‍has intensified market fears, according to market analyst, Sophie Lund-Yates. Investors are now questioning if there is something more serious brewing beneath the surface.

Analysts are divided on ⁤the implications of this slowdown. Jefferies analysts Andrew‍ Wade and Grace Gilberg suggest the recent figures, while disappointing, do ‍not reflect underlying issues with the business. They anticipate a ‍re-acceleration in‍ the second half of 2025.

Part of the ‍anticipated⁤ profit dip is attributed to increased operating ⁤costs linked ⁤to new ‍store openings and ongoing refurbishments. Thes activities are weighted toward the first half of the year.

Third Bridge analyst Alex Duran noted that any recovery hinges on cost mitigation and expansion plans. ‍Duran also⁤ cautioned that Greggs may have reached its optimal store count.

With ‍over 2,600 locations nationwide and plans to add 150 more,⁣ Greggs aims‍ to become a significantly larger business. Currently, the chain accounts for £2 of every £100 spent in the hospitality sector.

“Investors [will be] wondering if ⁣something more serious is cooking,” said Derren Rouch,market analyst for eToro.
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⁢ “Investors [are] asking if we’ve reached peak sausage rolls territory… and the latest trading update is only going to add to market fears,” said Susannah Streeter, head of money ⁤and markets at Hargreaves Lansdown.

What’s next

Greggs’ ability to manage costs and execute its expansion strategy will be‍ critical in reassuring investors and determining whether it can continue its growth trajectory or if it has indeed reached its peak.