Greggs to reveal trading amid pressure from cost of living and weight loss drugs

Greggs is to shed light on demand from customers as the high street bakery chain contends with the rise of weight loss treatments and cost of living pressures on shoppers.

The high street chain is also wrestling with other factors including increases to labour costs and tax changes.

As a result, on Tuesday March 3, Greggs is expected to reveal pre-tax profits of around £173 million for the year to December 27, representing a 9% drop.

In its previous update shortly after Christmas, Greggs pointed to a strong finish to 2025 as sales growth accelerated in the final quarter of the year.

Like-for-like sales growth rose from 1.5% in the third quarter to 2.9% in the final months of 2025.

Totals sales were up 7.4% in the final quarter amid a boost from the group’s continued store opening programme.

The company opened 121 stores last year.

However, analysts at Deutsche Bank said expectations “have already been set low” for 2026 and are “unlikely to change”.

In January, Greggs said it was “cautious but hopeful” about its outlook for 2026, highlighting “subdued” consumer confidence.

Roisin Currie, chief executive of Greggs, also warned alongside its previous update that there was “no doubt” appetite-suppressing medication is having an impact on the bakery chain’s business.

It may provide more detail on how this continues to change customer eating habits.

Meanwhile, the group also announced that inflation was likely to be shallower than last year.

The group increased the price on a number of products and deals last year, so shareholders will also be keen to see how these changes have continued to impact trading.

Aarin Chiekrie, equity analyst at Hargreaves Lansdown, said: “Investors are keen to hear how 2026 is shaping up in the early months.

“While the picture on the cost front is beginning to look more favourable, Greggs has plenty of other challenges still to wrestle with.

“Unhelpful changes to tax rules and minimum wages, slowing UK economic growth, and cost-conscious consumers are all weighing on the outlook.”