Bakery giant Greggs has warned that the recent heatwave led to shoppers buying fewer pastries, resulting in a sharp drop in the company’s share price.

In an update to investors, Greggs said “very high temperatures” triggered a reduction in footfall across its stores, with shares falling by more than 14pc in early trading.

The hotter weather increased demand for cold drinks, Greggs said, but customers have steered clear of its hot pastries and sausage rolls.

It said this will lead to lower profits this year, fuelling concerns over the company’s valuation after Greggs shares fell by 40pc in the last six months.

Greggs’ update came after the NHS warned the public to stay indoors on Tuesday as temperatures his 34.7C in some parts of the country.

This followed weeks of warmer weather, with Met Office figures suggesting that this June was the hottest ever in England since records began in 1884.

The latest profit warning will reignite the debate over Greggs’ recent performance, as some customers question whether it is still good value after a string of price increases.

In January, it raised the price of sausage rolls by 5p, blaming its higher wage bill, increased tax costs and ingredient increases.

Roisin Currie, the chief executive of Greggs, said: “We had to look at it around inflation headwinds. We came out of Covid in peak inflation territory.”Despite challenges, Greggs wants to continue a strategy of expansion - Alan Morris/iStock

Analysts at Peel Hunt said the weather had clearly hit Greggs, but they were equally concerned over “the group’s relative value proposition being eroded in the eye of the consumer”.

Improved performance is key as Greggs pushes ahead with a major expansion drive, having opened 87 new shops in the first half of 2025. It now has 2,649 stores.

The company said it was confident it would hit its target of opening up between 140 and 150 new stores by the end of the year.

However, long-term plans to hit 3,500 stores have been described as overly ambitious by Peel Hunt.

He said: “This implies store densities of one Greggs for every 19,000 people, which comes well ahead of McDonald’s store estate and ahead of Costa.”

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