2 no-brainer growth shares to consider in 2025!

These FTSE 100 and FTSE 250 growth shares delivered impressive share price gains in 2024. I think they should continue to rise this year and beyond.

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Looking for the best growth shares to buy in the New Year? Here are two of my favourites.

I’ve put my money where my mouth is and bought them for my own portfolio.

Games Workshop

Created with Highcharts 11.4.3Games Workshop Group Plc PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.co.uk

Last year was a landmark one for tabletop gaming giant Games Workshop (LSE:GAW) as it entered the FTSE 100 for the first time.

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Earnings here have grown consistently and at rapid pace in recent years, as the chart below shows. Tabletop wargaming isn’t everyone’s cup of tea. But it’s growing rapidly as global interest in the fantasy soars, and board gaming in general enjoys a renaissance.

Games Workshop's earnings
Source: TradingView

Through its Warhammer line of products, Games Workshop is at the forefront of this booming industry. And it’s aiming to enter the mainstream by launching film and TV content with Amazon in the next few years.

It’s a move that could supercharge sales of its traditional games systems and create huge royalty revenues in its own right.

Profits look set to continue rising strongly in the meantime, as new products fly off the shelves and the company grows its worldwide store estate. Late November’s trading update underlined its continued trajectory, predicting pre-tax profits of at least £120m in the six months to 1 December, up 25% year on year.

This supports City predictions that annual earnings will grow 7% this financial year (to May 2025). Earnings are tipped to increase another 5% in next year as well.

Games Workshop’s strong outlook is reflected by its elevated price-to-earnings (P/E) ratio of 27.2 times. While I think the company is worthy of this premium valuation, it means its shares could potentially slump if any hiccups occur.

Greggs

Created with Highcharts 11.4.3Greggs Plc PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.co.uk

Pandemic aside, Greggs (LSE:GRG) has also enjoyed impressive earnings growth in recent years. This is thanks largely to an expansion strategy that’s pushed sales around three-quarters higher since 2019.

Greggs' earnings
Source: TradingView

For 2024, City analysts think the FTSE 250 company’s earnings rose 8% year on year. They’re forecasting further meaty growth — of 7% and 8% — in 2025 and 2026.

This is perhaps unsurprising given Greggs’ commitment to keep growing its store estate from current levels of around 2,560. It planned for between 140 and 160 new outlets in 2024 alone, and plans to have 3,500 company-managed and franchise outlets up and running in the next few years.

Competition in the food-on-the-go market is intense and remains a threat. But Greggs’ recipe of offering generational favourites (like sausage rolls and doughnuts) at attractive prices is helping it successfully navigate this danger. Latest financials showed sales up 12.7% between 1 January and 28 September.

The baker’s also effectively tailoring its services to meet the needs of the modern consumer. Recent measures include introducing a click and collect service, building drive-thru outlets, and extending opening hours into the evening.

Today Greggs trades on a forward P/E ratio of 20.8 times. While the stock isn’t cheap, I don’t this will affect its chances of printing further impressive gains following last year’s healthy rise.

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Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Royston Wild has positions in Games Workshop Group Plc and Greggs Plc. The Motley Fool UK has recommended Amazon, Games Workshop Group Plc, and Greggs Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

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