Greggs (LSE: GRG) shares are among the most watched on the stock exchange FTSE250. I have always believed that brand recognition plays a substantial role in this. Everyone has an opinion about Greggs, both negative and (increasingly) positive.

The bakery chain had a bit of a cult following in the North East due to its Newcastle roots, but was a joke elsewhere. PR masterstrokes like vegan sausage rolls changed that, re-heating a brand that could easily have become a dated brand. The cost of living crisis has helped by providing people with economical relief in challenging times.

Are FTSE 250 stocks still doing well?

Greggs has strengthened its marketing strategy with ambitious expansion plans. The management intends to raise the total number of stores from 2,500 to 3,500, and not only on main streets. It is targeting train stations, airports, supermarkets and retail parks, while evening openings are being tested.

Management keeps margins high by quickly closing stores that are not too busy. But did he suddenly hit a wall?

When I looked at the Greggs share price for A motley fool It was still scorching on August 23. Sales in the first half of the year increased by 14% to £960.6 million. It has also expanded to include fresh product lines, including flatbreads, pizzas and frozen drinks.

I had £3,000 in my trading account but didn’t buy Greggs. The stock looked a bit pricey, with a price-to-earnings (P/E) ratio of 23.65. This is almost double the then FTSE 250 average of 12.4 times. So not exactly a economical treat. I was concerned that there had been a significant raise and although Greggs looked good, it was susceptible to bad news.

My application three months ago? “I will look for better value stocks to sink my teeth into. However, it is a well-managed business with enormous growth potential. After all, the joke might have been on me.

This growth material still has an advantage

But once that wasn’t the case. Since then, Greggs shares have fallen from 3,176p to today’s price of 2,700p. This is a decrease of 15%. If I invested £3,000 it would be worth £2,550 today. So I would lose 450 pounds.

Of course I’m glad to have escaped this gruesome fate, but what went wrong at Greggs? The decline began on Oct. 1 with a poorly received third-quarter update as sales growth slowed. Many companies would have been delighted with the 10.6% raise, but this was down from the first half of the year, which was 13.8%.

The management board followed year-round guidelines and relies on fresh openings and creative products to raise sales. But on October 30, the budget dealt another blow. Employer’s National Insurance and the minimum wage will hit Greggs, which employs more than 32,000 people, difficult.

The nine analysts offering one-year stock price forecasts remain hopeful, setting an average target of 3,314 points. If true, that would represent an raise of just over 22%. Although there is a wide range of predictions, from 4040 to as low as 2400. There is also a return rate of 2.30%.

However, with a P/E ratio of 21.38 times, I don’t think it’s a bargain yet. And this NI raid hasn’t even arrived yet. I’m not ready to join the cult of Greggs yet. But I’ll keep watching.