£10K invested in Greggs shares at the start of 2025 is now worth…

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

2025 has been painful for Greggs

To start with, contemplate the efficiency of the baker to this point this 12 months.

Regardless of its personal strategy to candy yum yums and the like, there is no strategy to sugarcoat this. Greggs shares have been a catastrophe to date in 2025. Particularly, they’ve misplaced 35% in worth. £10K invested at the start of January would now be price £6,500. Ouch.

Sure, the 3.7% dividend yield appears to be like fairly tasty. However that hardly scratches the floor in terms of mitigating that depressing efficiency.

Nonetheless, previous efficiency is not essentially an indicator of what might occur in future. One profit of the falling worth 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 12 months.

A brief blip, or longer-term downside?

Nonetheless, that kind of fall doesn’t occur with out cause. And the share worth has proven little signal of kicking again into life at any level currently.

So, what is occurring?

I believe the Metropolis has been alarmed by the undeniable fact that Greggs is on the incorrect facet of many developments in the UK economic system. From weakening excessive road footfall, minimal wage staff and Nationwide Insurance coverage contributions to hovering espresso bean costs, Greggs is prone to take successful to its earnings this 12 months from all types of instructions.

However does that basically matter? In any case, prices can typically be handed on to clients in the kind of larger retail costs. Greggs is already competitively priced, so pushing costs up a bit might not have too dangerous an influence on gross sales volumes.

In the meantime, the enterprise has proved repeatedly that it is aware of learn how to make what folks 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 believe it could construct on previous successes, I additionally reckon Greggs can use its current belongings to develop in areas it has beforehand largely ignored, comparable to night meals.

I plan to carry

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

The truth that they’re presently not recapturing a lot of the floor misplaced this 12 months in phrases of share worth doesn’t trouble me.

As a long-term investor, my strategy is to purchase what I believe are attractively priced shares in nice firms, then maintain on to them. Greggs strikes me as a superb 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 worth upwards.