The boss of Greggs has warned that 2026 will ‘remain challenging for the consumer’ after sales at the start of this year slowed.

Chief executive Roisin Currie struck a bleak note as she revealed that profits at Britain’s biggest bakery chain plunged last year, amid a ‘tough environment’.

And she admitted that the group expects ‘consumer sentiment to continue to be a headwind in 2026’ amid concerns over stubbornly high grocery and energy bills.

Like-for-like sales in the group’s shops rose 1.6 per cent in the first ​nine weeks of the year, after they rose 2.9 per cent in the Christmas quarter.

Greggs also said it was ‘seeing some emerging shifts in dietary preferences’ amid an uptick in weight-loss drugs such as Mounjaro and Wegovy. 

Some consumers are ‘seeking greater choice in areas such as increased protein, more fibre and smaller portions,’ it said.

But 'pressure on disposable incomes remains the key factor' impacting sales performance, the group said.

Pre-tax profits fell 17.9 per cent to £167.4 million for the year to 27 December - despite sales rising 6.8 per cent to £2.1bn.

But Currie said she hoped that ‘easing inflationary pressures should provide some support to consumer spending’ as the year progresses.

Shares in Greggs fell 2 per cent on Tuesday morning before recovering again. Investor nervousness comes amid concerns of dark clouds gathering over the High Street as businesses struggle with higher costs and consumers look to save money.

Julie Palmer, managing partner at Begbies Traynor, said: ‘The increasing popularity of weight loss drugs, lower spending and confidence from consumers and rising business costs seem to have eaten into this bakery giant’s profits.

‘Despite a year of opening branches and resilient sales in a flaky market, even Greggs has been unable to stay completely immune from the challenging outlook for food and drink retail. 

'Having a strong slice of the food to go market share and strong customer loyalty thanks to its ability to deliver low prices and desired quality, the group will be feeling more comfortable than some of the competition entering 2026.’