Greggs Shares Hold Or Sell

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Greggs Shares Hold Or Sell

Should You Hold Or Sell The Greggs Shares?

Greggs share price is in a long-term downtrend. A quick look at the last 5 years shows it has fallen from near 3000p and is now trading below 2000p. This has led many investors to wonder whether they should hold the Greggs shares or whether it is better to sell them.

One reason why Greggs is performing so poorly is the cost of living crisis. Higher inflation and low income growth means the households are only spending on really necessary stuff. This has hurt the like-for-like sales growth of Greggs.

Greggs' Pretax Profits Are Down

The total sales showed an increase of 6.8% in 2025. However, the pretax profit declined by 18%, and the operating margins are down from 9.7% to 8.7%.

Other problems faced by Greggs are high energy costs, input costs, and a rise in wages. All of these things have narrowed the margins and affected the company's bottom line.

Another thing worth mentioning is that Greggs is the most shorted stock in the UK market. So, that's also something which is putting pressure on the share price.

So, can Greggs make a comeback? Yes, it can if the economy gets better! A decline in fuel and power prices will be a good start for Greggs. In addition, an improvement in income or a decline in inflation levels will also make things easy for Greggs.

Greggs also knows about the issues and is actively working on improving revenue. It has lowered capital expenditure and is also planning store expansion. Also, Greggs offers a dividend yield of 4.3%, which will also attract some buyers.

Last but not least, Greggs shares also look cheap with a forward P/E of only 13. All of these things mean new buyers could also find the Greggs shares worthwhile.

The bottom line is that any recovery in the Greggs shares will depend on UK consumers. If the cost of living crisis is not solved, it will impact the Greggs's bottom line. On the other hand, an improvement in the economy will be good for Greggs.

So, if you are a long-term investor, then you should hold the Greggs shares. You can expect positive returns in the next 3-4 years.

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