Greggs – executive interview

In our interview with Richard Hutton, CFO of Greggs, he discusses the general trading backdrop, highlighting that while the business has outperformed a challenging market, negative volumes reflect broader consumer weakness rather than any loss of its value-led positioning, and outlined how it is responding operationally. The discussion also addressed suggestions of ‘Peak Greggs’, with management reiterating confidence in the group’s long-term growth potential through continued estate expansion, product development and daypart opportunities, albeit with a more balanced approach to new store openings as it weighs near-term returns against the opportunity to gain market share. Richard also covered efficiency savings delivered in FY25 and the scope for further opportunities, alongside commentary on slightly lower-than-expected capex in the coming years, with the peak capital investment cycle behind it. Looking ahead, the outlook for limited profit growth in FY26 in the absence of a consumer recovery was discussed as well as an update on cost inflation and potential commodity risks in light of recent geopolitical developments. Finally, we explored the potential impact of GLP-1 drugs, including the work undertaken to understand the trend and how product development is evolving in response, highlighting both the risks and opportunities for Greggs.