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GREGGS IN FREEFALL! Is the Bakery Giant Crumbling Under Pressure?

2025: A Year to Forget for Greggs Investors!

In a shocking twist, Greggs is plunging into chaos as its shares take a nosedive! The latest half-year numbers spell disaster, and shareholders are left gasping for air.

Look Out Below – the Profits Are Falling!

Total sales might have climbed 7% in the half-year to June 28, but don’t let that fool you! Foot traffic has tanked due to a relentless heatwave across the UK. Those sizzling summer days have led to a staggering 14.3% drop in pre-tax profits, leaving the company with a mere £63.5 million in the bank!

CEO Roisin Currie has attempted to spin this nightmare into something resembling positivity. How? By throwing around buzzwords like “supply chain improvements” with shiny new logistics hubs in Derby and Kettering. But investors aren’t buying it!

As we speak, Greggs’ stock has already plummeted 5% in early trading, and it’s a staggering 50% drop over the past year!

Brace for More Pain Ahead!

The storm isn’t over yet! With the scorching weather continuing into July, the next update, set for October, could deliver more bad news. Investors are questioning just how far Greggs can stretch its growth before hitting a wall.

Despite claiming there are “clear opportunities” for more than 3,000 UK shops, analysts are raising their eyebrows—could this be wildly optimistic?

Already Priced In? Or Is It a Trap?

Some experts argue that the current dismal outlook might already be priced into the shares, trading at a modest price-to-earnings (P/E) ratio of 13. However, that’s a far cry from the premium valuations Greggs enjoyed just a year ago.

And what about the weather excuse? Sure, consumers love a hot pasty, but it’s no shocker that they aren’t keen on them during a heatwave!

To sweeten the deal, shareholders can still count on a dividend, as the interim payout remains steady at 19p per share—offering a yield of around 4%. But does that compensate for the agony?

Are You Ready to Pounce?

For those eyeing this bakery titan, the tension is palpable. After selling my own shares around this time last year, I’m lurking on the sidelines, keeping my finger ready to press that buy button!

Is this the bottom, or are we in for more chaos? Stay tuned, because Greggs might just have a few tricks left up its flour-dusted sleeves!