Tourists and domestic visitors in the West End at Leicester Square outside the Greggs bakery which is known as the Mega Greggs on 28th July 2024 in London, United Kingdom.
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U.K. high-street baker Greggs, famed for its sausage rolls and hot savoury bakes, warned on Wednesday that sales in June were hit by unusually hot weather in June.
Shares of the bakery chain plunged around 15% on Wednesday after the company issued a trading update in which it said unseasonably hot weather in the U.K. had hit customer footfall and dented like-for-like sales in June.
Like-for-like sales grew by 2.6% with total sales hitting £1.03 billion ($1.4 billion) in the first half of 2025, up from £961 in the same period last year, but the company said that like-for-like sales last month — the second-hottest June on record in the U.K. — were impacted “as very high temperatures affected the U.K., increasing demand for cold drinks but reducing our overall footfall.”
A vegan sausage roll from a Greggs outlet in London in 2019.
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The baker has proved a hit with British consumers with its sausage rolls, chicken bakes, jam donuts and new Mac & Cheese offering — which went “viral” on social media — becoming best-sellers.
While it did not specify whether sales of its hot bakes were particularly affected by the recent heatwave weather, with temperatures soaring to around 33 degrees Celsius (91 Fahrenheit) in the south of the country, British buyers likely opted for cooler offerings.
Greggs is expected to provide more specific detail on what sales were affected when it releases its 2025 interim results at the end of July.
However, it warned on Wednesday that “in light of the current trading conditions” full-year operating profit “could be modestly below that achieved in 2024.” The company is looking to continue an expansion drive, however, saying it remained confident in achieving 140 to 150 net openings for the full year.
“Greggs might be feeling the heat, but not in the way it hoped,” Mark Crouch, market analyst for eToro, said in emailed comments as the company’s share price tanked on Wednesday.
“For a brand that’s built its success on affordability and convenience, a dip in demand raises eyebrows, especially when footfall should be strong,” he said.
“Sure, it’s harder to sell a hot sausage roll in a heatwave, but a stretched consumer may be part of the bigger picture. Inflation may be easing, but wallets are still under pressure, and Greggs’ value proposition may be losing a bit of its bite,” Crouch added.