Greggs faces questions about Britain's appetite for its sausage rolls

Greggs says capital spending has passed its peak and will fall significantly in 2026 and again in 2027, after slower sales and a sharp share fall in 2025.

Greggs is moving to reduce capital spending after several years of rapid expansion. The company says it is past the peak of capital expenditure and expects outlays to fall significantly in 2026 and again in 2027. Sales growth slowed in 2025 and investor scrutiny has intensified, including elevated short interest and activist commentary. Questions have been raised about whether further store openings could start to cannibalize demand. Current facts: - Greggs announced that capital expenditure has passed its peak and will reduce significantly in 2026 and again in 2027. - The company has more than 2,600 stores and opened new sites at about four per week in 2025, while expanding distribution capacity. - The article mentions slower sales growth in 2025, a roughly 40% share decline that year, and short interest rising to over 18% of shares outstanding. - Management said it will prioritise locations where it is underrepresented, such as roadside, travel hubs, retail parks and supermarkets, and explore extended hours, drive-throughs and click-and-collect services. Summary: Greggs' decision to scale back capital spending comes amid slower sales and heightened investor scrutiny after a sharp share decline and high short interest. The company plans to reduce outlays in 2026 and 2027 while shifting focus to different site types and service formats as it evaluates growth options.