The bakery chain, which has about 2,740 shops, said it was performing better than its competitors.
Greggs has served up stronger Christmas sales but said the food-to-go market was struggling with “subdued” consumer confidence.
Shares in Greggs tumbled by about 8% on Thursday after the bleak assessment of the high street.
The bakery chain, which has about 2,740 shops, said it was performing better than competitors in the market.
Total sales jumped by 7.4% over the three months to December 27, bringing its yearly sales to £2.15 billion, 6.8% higher than 2024.
This takes into account new shop openings leading to more spending – with 121 net new shop openings during the year.
Sales at company-managed shops, as opposed to franchises, rose at a slower rate of 2.9% when compared like for like with the previous year.
Greggs highlighted its “line-up of seasonal favourites” over the Christmas period, including its festive bake and vegan version, and a festive flatbread to meet demand for lighter lunchtime choices.
It also hailed an increase in its share of the wider market thanks to more customer visits, including for breakfast and in the evening.
But the sales update came with a note of caution as the company said consumer confidence was “subdued” and affecting the food-to-go market.
Chief executive Roisin Currie said: “We made good progress in 2025, in a challenging year where subdued consumer confidence impacted the food-to-go market.
“Against this backdrop, I’m pleased that Greggs outperformed the wider market and increased its market share of visits.”
She added that the chain was focused on being “even more convenient for customers” and providing value-for-money for those “managing their budgets carefully”.
Retail sales across the UK declined in October and November, with supermarket and food sales suffering amid ongoing cost-of-living concerns, official figures showed.
Greggs raised some of its prices in October including of some baked goods and its breakfast deals.
The company has been taking action to help mitigate rising business expenses, including higher wages and taxes, and investments into its supply chain.
