Greggs (LSE: GRG) shares are all the trend. We see this on the Idiot. Buyers gobble up articles on the UK’s favorite bakery chain. Synthetic intelligence (AI) has evidently taken be aware of its reputation.

This morning, I requested the AI chatbot to call 2 FTSE 250 shares that look properly positioned to surge in worth in 2025. Its first suggestion was fantasy video games producer Video games Workshop. Because the inventory entered the FTSE 100 in December, ChatGPT’s behind the instances. As is usually the case, in my expertise.

Its second choose was good outdated Greggs. ChatGPT praised the group’s sturdy growth because it will increase retailer depend and put money into on-line channels.

Is that this FTSE 250 inventory previous its finest?

There was no point out of the latest slowdown in gross sales, which made me cautious. Then I found that the reply to my query was lifted from an article written in September and lots’s modified since then.

Clearly, ChatGPT’s a pc programme moderately than a inventory tipster. And to be honest it’s the primary to confess it. It’s enjoyable to play with however should be handled with excessive warning. Proper now, I’d say the identical about investing in Greggs.

The shares had a superb run, due to a witty advertising drive that neatly positioned its sausage rolls and different pastry-based produce as an affordable deal with in tough instances. Naughty however good and nothing to be ashamed of.

As confidence grew, the board made bold plans to spice up retailer depend from 2,500 to three,500, goal night openings, and pioneer shops in railway stations, retail parks, airports and the like.

Revenues rocketed from £811m in 2021 to £1.8bn in 2023. No marvel traders liked it. On 9 January, we discovered they topped £2bn in 2024. However there was a catch.

Within the first half of final yr, whole like-for-like gross sales rose 13.8%. That slowed to 10.6% in Q3 and simply 7.7% in This autumn. Shoppers are struggling proper now, with the board blaming “more subdued high street footfall”.

Margins are being squeezed

As we all know, the UK economic system’s having a tricky time. Progress has just about flatlined because the election, and a recession’s doable. Even Greggs will wrestle to develop given the gloomy outlook for the excessive avenue. Finances employer’s nationwide insurance coverage and minimal wage hikes will squeeze margis.

The board’s ploughing on, with a robust pipeline of recent store openings, whereas shuttering underperformers to maintain margins excessive. It’s additionally broadening its menu and enhancing digital capabilities, whereas engaged on its provide chain.

However analysts are forecasting gross sales development of simply 2.9% within the yr forward. If appropriate, that may mark an extra slowdown.

On the plus aspect, the shares are cheaper. Final yr, they’d a price-to-earnings ratio of greater than 22. That’s now slipped beneath 17 instances.

Some far-sighted traders may think about this a possibility to purchase Greggs shares, which can get better when the economic system does. I don’t suppose we’re there but and can be buying elsewhere for FTSE 250 bargains. No matter ChatGPT ‘thinks’.