Shares of GGGSF fell by 6.5% following a trading update that fell short of investor expectations. While the company reiterated guidance for the current financial year, like-for-like sales growth in company-managed outlets came in softer than anticipated, at just 2.9% for the fourth quarter. Market participants had been looking for a clear acceleration in performance after a seasonally strong period, but management’s cautious commentary on growth prospects for 2026 tempered confidence.

Despite challenging consumer conditions, GGGSF reported a 7.4% increase in total sales for the quarter ended December 27, driven by higher transaction volumes and a modest uplift in average transaction value. Full-year sales showed a similar increase, reflecting resilient demand for the bakery chain’s core product range. However, investors focused on dividend yield and capital allocation priorities, questioning whether sales momentum will translate into margin expansion in the second half.

Management reiterated expectations for the current financial year but refrained from providing detailed guidance for 2026. The board highlighted potential headwinds, including input cost inflation and softer consumer spending in key urban markets. Operating profit margin is expected to remain under pressure, with the company emphasizing continued investment in new shop openings and digital ordering capabilities to support longer-term growth.

GGGSF plans to open 50 new shops in the next 12 months, expanding its presence in regional towns and transport hubs. The company also intends to roll out an enhanced loyalty programme and upgrade kitchen equipment in 30% of existing stores to improve service speed and reduce waste. Management pointed to early pilot results showing a 5% uplift in repeat visits from loyalty members as evidence that these initiatives can bolster like-for-like sales over time.