2025 was not good for High Street favorites Greggs (LSE: GRG). Supremo with sausage stuffed Greggs divides 42% from the turn of the year.

Is it possible that the worst behind us is better from here? As someone who loaded the division of Greggs in recent months, the question was about what I meant!

Disturbing share price efficiency

Although the price of the action has slightly increased over the past week, it is still 5% lower over the past month.

In a sense, the price disaster this year was good. This increased the dividend performance, which is now a tasty 4.3%.

This also meant that the valuation looks more and more attractive, and shares are currently trading in price to profit (p/e) of 11. This is much lower than in some moments in the last few years.

However, this is a great reservation. Although the p/e indicator based on last year’s earnings looks affordable, it may not be if prospective earnings fell.

This is how it happened in the first half of the year. Temporary results last month showed that the diluted profit of the baker on the action will fall by 16%. Then there was a warning of profit, which was mentioned that the full annual operational profit could be “modestly below“From the previous year.

Buy bargain traps or value?

Even a 5% decrease destroys value. 1,000 pounds invested in Greggs shares just a month ago reduced the value to 950 GBP.

If the slide continues – and this year’s table is not pretty so far – the destruction of the value may be continued.

It can happen. A warning about the company’s profit last month did not inspire trust. Blaming impoverished sales growth partly in the heat raises the question of how the choice of Greggs’s eaptyibil product and whether the cake and pastes the seller are doing enough to accommodate a notoriously capricious British atmosphere.

I also have some concerns about current management. The flat transitional dividend did not impress me and I think it plans to expand the distribution of the frozen range on Tesco He may turn around next month.

I am afraid that this can damage what Marek Greggs means. I think some customers will scratch their heads, why they should buy in the Greggs store instead of just buying a frozen product in Tesco and heat it themselves.

If management does not show that it can restore trust in the city, I think his days can be counted. This uncertainty can be harmful to the share price. Meanwhile, if the profits fall at a year -round level, apparently affordable Greggs shares may turn out to be a value trap.

But although the raise in sales in the first half was disappointing, there was still growth. Thanks to the novel holes in stores, total sales in the first half increased by respect by 7% year -on -year.

With a mighty brand, true customer base and an attractive proposition of values for consumers, I think Greggs has what you need to recover Mojo.

In this case, I think that Greggs’s shares at today’s price may look like an opportunity or two. That’s why I was buying.