2025 was not good for shareholders on the favorite Hight Street Street Greg (LSE: GRG). Supremo sausage roll has got rid of, Greggs shares have decreased by 42 % since the beginning of the year.

Could it be the worst behind us and things may improve from here? As someone who has downloaded Greggs in recent months, this question is something that has been going on in my mind!

Performing the disturbing share price

Although the stock price has risen slightly over the past week or so, it is still 5 % less over the past month.

In some sense, the collapse of the price seen this year was good. She has reinforced profits, and now stands by delicious 4.3 %.

This also means that the evaluation appears increasingly attractive, as the shares are now trading a price ratio (P/E) from 11 years. This is significantly less than in some points during the past few years.

This comes with a great warning, though. Although the P/E percentage based on last year’s profits seem cheap, it may not be if possible profits decrease.

This is exactly what happened in the first half of the year. The temporary results last month showed that the baker’s diluted baker’s profits decrease by 16 %. The profit warning that said the entire public employment profit was followed by “it could be” “Permanently below“This year.

Postering or trap of value?

Even a 5 % decrease destroys the value. 1 thousand pounds, invested in GregGs shares just one month ago, has already shrunk to 950 pounds.

If the slide continues – this year’s chart is not yet a beautiful way – the value may continue to be destroyed.

This may happen. The company’s profits warning last month barely inspired confidence. Blames on poor growth partially on hot weather raises a question about how to choose adaptable Greggs products and whether the innate seller and the seller do enough to accommodate the famous British climate.

I also have some concerns about the current administration. I did not like my admiration for a flat division distribution Tesco Next month, it can bring in reverse results.

I am afraid that it may harm the GregGs brand. I think some customers will scratch their heads about why they buy in the Greggs store instead of just buying and heating the frozen product in Tesco.

If the administration does not show that it can restore confidence in the city, I think its days can be numbered. This uncertainty alone can be bad for the stock price. Meanwhile, if the profits decrease at the entire year, the cheap GregGs shares may turn into a valuable trap.

But while the growth of similar sales in the first half was disappointing, it was still growing. Thanks to the new store openings, the total first -half sales grew by 7 % on an annual basis.

Through a strong brand, loyal customer base and providing convincing value to consumers, I think Greggs has what is necessary to restore Mujo.

In this case, I think Greggs shares at today’s price may look like a year or two from now. For this reason I was buying.