Greggs has issued a stark profit warning, forecasting flatlining earnings for the year ahead. The UK bakery chain, renowned for its sausage rolls and steak bakes, directly blamed 'subdued consumer confidence' for a 'challenging year' in the food-to-go market. This downturn highlights a broader squeeze on the UK's fast-food sector as inflation-weary customers cut back on non-essential spending.

The timing is particularly perilous, as the warning has attracted the attention of short sellers—investors betting on a further decline in the company's share price. This move signals deep skepticism about Greggs' ability to weather persistent economic headwinds and maintain its aggressive store expansion strategy. For investors, the announcement raises critical questions about the resilience of the value-food sector and whether Greggs' high-street dominance can translate into sustained profitability during a prolonged cost-of-living crisis.