Its retailers are a well-recognized sight on Britain’s excessive streets and legions of individuals tuck into its snacks every day. However does Greggs (LSE: GRG) cross the tastiness take a look at in terms of potential buyers too? Since I purchased Greggs shares a number of months in the past, they’ve roughly gone sideways. So, what may the long run appear to be?

2025 has been painful for Greggs

To start out with, contemplate the efficiency of the baker to date this yr.

Regardless of its personal strategy to candy yum yums and the like, there isn’t a option to sugarcoat this. Greggs shares have been a catastrophe to date in 2025. Particularly, they’ve misplaced 35% in worth. £10K invested at the beginning of January would now be value £6,500. Ouch.

Sure, the three.7% dividend yield seems to be fairly tasty. However that hardly scratches the floor in terms of mitigating that depressing efficiency.

Nonetheless, previous efficiency isn’t essentially an indicator of what could occur in future. One good thing about the falling price of Greggs shares has been that they now commerce for round 12 instances earnings. That appears low cost to me and explains why I purchased Greggs shares this yr.

A short lived blip, or longer-term drawback?

Nonetheless, that form of fall doesn’t occur with out purpose. And the share price has proven little signal of kicking again into life at any level these days.

So, what’s going on?

I feel the Metropolis has been alarmed by the truth that Greggs is on the flawed facet of many developments within the UK financial system. From weakening excessive road footfall, minimal wage employees and Nationwide Insurance coverage contributions to hovering espresso bean costs, Greggs is prone to take a success to its income this yr from all types of instructions.

However does that basically matter? In any case, prices can typically be handed on to clients within the type of increased retail costs. Greggs is already competitively priced, so pushing costs up a bit could not have too unhealthy an impression on gross sales volumes.

In the meantime, the enterprise has proved again and again that it is aware of how to make what individuals need, at scale and at a aggressive value.

This high-volume gross sales technique has seen the chain increase over the course of many years. Not solely do I feel it may construct on previous successes, I additionally reckon Greggs can use its current belongings to develop in areas it has beforehand largely ignored, reminiscent of night meals.

I plan to carry

Based mostly on that, I reckon the shares proceed to look attractively priced.

The truth that they’re at the moment not recapturing a lot of the bottom misplaced this yr when it comes to share price doesn’t trouble me.

As a long-term investor, my strategy is to purchase what I feel are attractively priced shares in nice firms, then maintain on to them. Greggs strikes me as a wonderful enterprise with a confirmed mannequin.

So, I’m pleased to take a seat again, let dividends roll in and wait whereas — hopefully — ongoing enterprise success finally pushes the share price upwards.