Greggs PLC (LSE:GRG) reported higher sales for the fourth quarter and full year ended 27 December, despite challenging market conditions.
Fourth quarter total sales increased 7.4%, while like-for-like sales in company-managed shops rose 2.9%.
Total sales for FY25 increased 6.8% to £2.151 billion, compared with £2.014 billion in the prior year, with company-managed shop like-for-like sales up 2.4%.
Greggs said subdued consumer confidence continued to impact the food-to-go market, although the company reported year-on-year market share gains.
“We made good progress in 2025, in a challenging year where subdued consumer confidence impacted the food-to-go market. Against this backdrop, I'm pleased that Greggs outperformed the wider market and increased its market share of visits.” She added that investments in supply chain capacity would start to become operational during 2026," said chief executive Roisin Currie.
Greggs ended the year with net cash of £47 million and said it expects significantly lower capital expenditure in 2026 following the peak of its investment programme.
Market commentators described it as a "solid" update, nonetheless, in a weaker session for the broader market in London, Greggs shares fell just over 8% to change hands at 1,628p in Thursday's early dealing.
“Greggs’ Q4 trading update delivers a reassuring end to a challenging year ... This is evidence that the brand’s value appeal and seasonal favourites are still resonating despite subdued consumer confidence," said Adam Vettese, market analyst at eToro.
"Greggs trades on mid-teens multiples which is reasonable and investors may see value here and bet on a rebound, although this will be contingent on consumer confidence doing the same.”