Greggs‘ (LSE:GRG) shares have slipped a further 8% over the last month, now sitting around 1,753p. That’s a big drop from the stock’s 52-week high of 2,046p in late July.

But the famous high street bakery chain is still up almost 10% over the past year, largely due to strong half-year results. But if the next results disappoint, those gains could all be wiped out.

So should I take some profit before it falls further, or keep holding in the hope this is just a short-term dip?

Strong results, weaker mood

There was a good reason to hold Greggs through the summer. Its latest interim results showed total sales rising 7.2% to £1,101.5m in the 26 weeks to 27 June. Company-managed like-for-like sales increased 2.1%, while operating profit climbed 22.9% to £86.5m.

Pre-tax profit rose 19.7% to £76m, helped by new shops, grocery growth and tight cost control.

Those numbers don’t reflect a business in trouble, and the market responded accordingly. The shares jumped sharply after the announcement, and the stock was still roughly 12% higher year to date by mid-August.

As such, this more recent dip feels more like slowing momentum rather than any sign of structural issues. But, of course, that’s just my interpretation. How does management feel?

Overall, the outlook seems cautiously optimistic. Management kept its full-year outlook unchanged, with underlying pre-tax profit expected to be similar to 2025’s £172m. In other words, strong first-half growth doesn’t automatically mean rapid full-year earnings growth.

So if these impressive results have failed to keep the shares rallying higher, what might persuade investors to return?

What do analysts think?

Analyst opinion is mixed. The latest consensus is Hold, with an average 12-month target of about 1,900p. That’s barely a tick above the current price.

Looking at what specific brokers think adds no clarity. JP Morgan seems unusually positive with a target of 2,210p and an Outperform rating, while Deutsche Bank reiterated a Sell rating with a 1,330p target. Jefferies, meanwhile, is on the fence, with a Hold rating and a 1,740p target.

With almost no growth expected in the coming year, dividends are doing all the heavy lifting when it comes to investment appeal. But with a yield just below 4%, is that alone enough to justify locking up capital? 

Potential investors will need to decide whether the current price offers long-term value, and if the dividend is enough to satisfy until then.

Patience over panic

It’s easy to see why some analysts are becoming impatient. The company’s growing sales, but management’s profit guidance suggests that near-term profits could remain subdued for some time. Meanwhile, the share price sits well below its peak, hovering around the average broker target.

Still, Greggs’ commitment to innovative new products makes it a stock worth considering. Iced matcha drinks and higher-protein salads are grabbing the attention of more health-focused clientele. It also opened 34 net new shops in the first half of 2026, taking its estate to 2,773 locations.

Those moves support the growth story, but only if they eventually prove profitable.

For now, I plan to hold and see whether the menu innovation and estate expansion translate into stronger profits. The next update should give more clarity, and reveal whether my conviction may one day pay off.

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Mark Hartley owns shares in Greggs.