Shares in Greggs PLC (LSE:GRG) fell 6.5% to 1,658p on Thursday after the food-to-go group left guidance unchanged and delivered a trading update that failed to convince investors the recovery has real momentum.
The shares moved lower despite the bakery chain reiterating expectations for the current financial year, with the market instead focusing on softer-than-hoped like-for-like sales growth and a more cautious outlook for 2026.
Greggs said trading improved slightly towards the end of the year, but growth remained modest. Like-for-like sales rose 1.5% in the third quarter and accelerated to 2.9% in the final quarter.
While that marks an improvement, it came against easier comparisons, making the outcome a mild disappointment for some analysts.
The backdrop has been challenging. Consumer spending weakened noticeably in the run-up to the Budget, and Christmas trading across the high street was widely seen as subdued.
Against that context, Greggs’ performance was respectable, but not strong enough to lift confidence in future growth.
Guidance for the current year was left unchanged, which may offer reassurance in the near term.
However, sentiment around 2026 looks more fragile. While cost pressures are expected to ease, demand remains uncertain and profit growth next year is unlikely unless consumer confidence improves.