Greggs' sales top £2bn after pizza boost but sausage roll still king

British bakery chain Greggs announced that its total revenue exceeded £2 billion last year, benefiting from increased sales of products such as pizza, chicken goujons, and potato wedges. Despite the continuous enrichment of its menu categories, the classic sausage roll remains its best-selling item.

The company, renowned for its baked goods, stated that increasing menu options reflects its "further growth ambitions." Simultaneously, Greggs revealed that nighttime sales are also on the rise as its stores shift from traditional high streets to transportation hubs such as train and bus stations.

However, due to the impact of cost of living concerns, Greggs anticipates a more challenging operating environment in the coming year, with actual sales lower than previously expected. Affected by this, the company's stock price fell by 12% on Tuesday morning. The company stated: "After years of financial anxiety, consumers still face concerns about rising energy prices and mortgage and rental costs."

Greggs also reiterated its criticism of the government's decision to increase employer national insurance contributions and other labor costs, stating that it may pass on these costs by raising product prices. Despite these challenges, Greggs achieved a pre-tax profit of £204 million in 2024, an increase of 8.3% year-on-year.

Chief Executive Roisin Currie said: "Our hot food menu is becoming increasingly popular, with pizza deals driving strong growth." However, she also emphasized to the BBC that the menu expansion "absolutely will not" mean abandoning its core products, adding that savory baked goods still account for a third of its sales.

Newcastle-based Greggs added a net 145 new stores last year, thanks to its continued strategy of expanding non-high street locations. A decade ago, four-fifths of Greggs' stores were located on high streets, whereas today, the company says that almost half of its stores are in alternative locations such as gas stations, roadsides, transportation hubs, retail parks, supermarkets, universities, and hospitals.

Greggs' latest results also show an increase in sales from takeaway platforms, and one in five customers now use its app. Quilter Cheviot analyst Mamta Valechha said that despite the difficulties facing the coming year, Greggs is "still in a strong position, thanks to its plans to open more stores, expand its menu, increase nighttime opening hours and increase digital sales." She added: "These initiatives should support further growth, even as the retail industry faces ongoing challenges."