Greggs: Sausage roll-maker passes two milestones despite ‘subdued’ footfall

Greggs reported a record-breaking year in 2024 as the sausage-roll maker surpassed two key milestones, but warned on headwinds in 2025 after “subdued” footfall.

In an update to markets today, the high street bakery reported an 11.2 per cent uptick in total sales, which sprung the company upwards of its sales milestone of £2bn.

However, shares have since tumbled by nine per cent today, reflecting growing caution for a turbulent year ahead.

During the fourth quarter, total sales were up 7.7 per cent while like-for-like sales were slightly lower, up 2.5 per cent. This could be due to Brits winding down for the festive period, and going into the office less.

The group also opened a record 226 new shops throughout 2024, however, 28 closures and relocation took that number to a total of 145 “net new shop openings”.

This has put Greggs in line with its previously revealed target of operating 3,500 stores across the UK. As of 28 December, there were 2,618 shops actively trading.

Looking ahead, Greggs plans to continue momentum, with a range of 140-150 new openings and 50 targeted relocations in 2025.

“We enter 2025 with a strong pipeline of new shop opportunities, and we continue to broaden our menu and enhance our digital capabilities, whilst also developing our supply chain capacity to deliver our growth strategy,” chief executive Roisin Currie said.

The firm has also continued to win over customers by keeping prices low and ramping up evening trade.

Currie added: “Whilst lower consumer confidence continues to impact high street footfall and expenditure, our value-for-money offer and the quality of our freshly-prepared food and drink position us well to meet the headwinds we expect to see in the year ahead.”

Caution ahead

Greggs also said its cash position of £125m was down on last year’s £195m reflecting “investment in growth and capacity” after opening more stores.

The company warned that “despite growth in disposable incomes, consumer confidence was subdued in the second half of 2024 and this weighed on industry-wide customer visits and expenditure.”

John Moore, senior investment manager at RBC Brewin Dolphin, said today’s figures highlight that Greggs witnessed a tougher trading period than expected in the second half of 2024.

He added: “There is notable caution in terms of rising employment costs and wider inflation – both of which will likely impact the shares today.

“Nonetheless, Greggs has proven its ability to navigate tricky times in the past and, with cash on its balance sheet, great brand awareness, and an entrepreneurial management team, there are reasons to be optimistic despite the headwinds.”