Mitchell Labiak
Business reporter, BBC News
Greggs’ revenue passed £2bn last year thanks to higher sales of pizzas, chicken goujons and potato wedges, but the sausage roll remains its top seller.
The firm traditionally known for its baked goods said adding more items to its menu was a sign of its “further growth ambition”.
Greggs also revealed evening sales were up as it moved away from High Streets and towards train and bus stations.
However, the firm’s sales were less than it had previously forecast as it said cost of living worries would make trading in the year ahead more difficult, and its shares slumped 12% on Tuesday morning.
“After years of financial anxiety, [customers] are still facing concerns about energy prices and increased mortgage and rent costs,” the company said.
The firm also repeated its criticism of the government’s decision to increase employer National Insurance contributions and other employment costs, adding it may pass on these costs through higher prices.
Pre-tax profit hit £204m in 2024, up 8.3% on the year before.
“Our hot food menu is proving increasingly popular, with pizza deals driving strong growth,” said chief executive Roisin Currie.
However, she told the BBC its menu expansion would “absolutely not” mean abandoning its core products, adding that savoury baked goods still made up a third of its sales.
Meanwhile, the company, which is headquartered in Newcastle upon Tyne, opened a net total of 145 new shops last year, thanks to its continued growth away from the High Street.
A decade ago, four-fifths of Greggs shops were on the High Street.
Today, the company says almost half of its shops are now in alternative locations such as petrol forecourts, roadsides, transport hubs, retail parks, supermarkets, universities and hospitals.
The firm’s latest results also showed higher sales from delivery websites, while Greggs said one in five customers now uses its app.
Despite the difficulties for the year ahead, Mamta Valechha, analyst at Quilter Cheviot, said the firm “remains in a strong position, helped by its plans to open more shops, expand its menu, increase evening trading hours, and grow its digital sales”.
“These initiatives should support further growth, even as the retail sector faces ongoing challenges,” she said.
