Core Viewpoint - Greggs reported a challenging market environment with like-for-like sales growth of 1.6% in early 2026 and total sales growth of 6.3% for the first nine weeks, impacted by adverse weather conditions and lower price inflation compared to the previous year [1][4] Sales Performance - Full-year total sales for 2025 grew just under 7%, with like-for-like growth of 2.4% in company-managed shops and 4.3% in franchise shops [4][7] - Market share of visits increased by 0.5 percentage points to 8.6%, while overall market visits declined by over 3% [3][7] Financial Overview - Underlying operating profit and profit before tax were in line with expectations, but statutory operating profit fell by 4% and profit before tax decreased by 9.4% [6][8] - Diluted earnings per share declined by 10.7%, attributed to a higher effective tax rate [9] Cost Dynamics - The company experienced 5.6% cost inflation in 2025, expecting it to moderate to around 3% in 2026, with food and packaging inflation anticipated to be low single digits [11] - Wage inflation was reported at just over 8% in 2025, expected to decrease to around 4% in 2026 [12] Capital Expenditure and Cash Flow - Capital expenditure peaked at £287 million in 2025, with guidance of around £200 million for 2026 and £150-170 million thereafter [5][16] - Operating cash inflow was £273 million, with net cash at year-end reported at £46 million [17] Expansion Strategy - The company plans to open around 120 net new shops in 2026, maintaining a target cash return of 25% on shop investments [18][19] - Evening trading has become the fastest-growing segment, reaching 9.4% of sales, with significant growth opportunities in evening delivery [21] Product Innovation - Greggs is evolving its menu to reflect consumer trends, introducing new items such as Tandoori Chicken Pizza and Iced Matcha Latte [22] - The company is investing in technology to support product innovation and improve customer experience [20][14] Supply Chain Developments - Investment in two new national distribution centers is underway to enhance logistics capacity for up to 3,500 shops, with expected openings in 2026 and 2027 [23] - The company anticipates a cost impact from the new Derby site, which will affect profit outlook in the second half of 2026 [24]