Greggs: Macro Outlook Worsens, But Shares Remain Cheap

Greggs plc remains challenged by weak U.K. consumer sentiment and cost inflation, and now faces the fallout from the conflict in the Middle East. On the plus side, CapEx peaked in 2025 and should decrease by £90 million this year and more in 2027. This will be a tailwind to free cash flow. Despite macro headwinds, Greggs isn't losing market share, and the valuation is attractive with shares trading on a trailing P/E ratio of less than 13.