Greggs, the famous British bakery chain, has issued a warning about its annual profits, warning that its 2025 operating results could fall below 2024 levels. The main cause is said to be the exceptionally hot weather that has hit the United Kingdom, discouraging consumers from eating out and reducing footfall in stores. The company's shares have fallen as much as 14,8% to 1.682 pence, down about 38% since the beginning of the year.
High temperatures, which topped 33 degrees in London, boosted demand for cold drinks but also hurt like-for-like sales in June. Greggs said its first-half operating profit would be lower than in 2024, partly due to the timing of store refurbishments and cost-cutting measures.
Despite the challenges, some analysts maintain a positive outlook: “While it is disappointing to revise the forecast downwards, we do not believe this reflects a structural weakening of the business,” commented Jefferies.
Greggs, which has overtaken McDonald's in the UK by outlets, reported total sales of £1,03bn in the first six months of 2025, up 6,9% year-on-year. According to LSEG, analysts are forecasting full-year operating profit of £198,5m, up from £195,3m in 2024. Meanwhile, food inflation in the country continues to rise, further exacerbating pressure on retail prices.
