LONDON, 27 November 2025 — Tesco PLC (LON: TSCO), the UK’s largest supermarket group, has continued its aggressive share buyback campaign with a fresh “Transaction in Own Shares” announcement this morning, while its share price trades close to 52‑week highs and its high‑profile food‑waste and charity initiatives move into the busy Christmas period. [1]
- New RNS today: Tesco has confirmed it bought and will cancel 4.24m shares on 26 November 2025 under its ongoing £1.45bn buyback programme, reducing the share count to about 6.44bn shares. [2]
- Share price today: After closing at 453.4p last night (up 1.86%), Tesco shares were trading around 455p late Thursday morning, leaving the stock roughly 6% below its recent 52‑week high and about 45% above its 12‑month low. [3]
- Cash returns accelerating: Since April 2025, Tesco has repurchased almost 299m shares for about £1.21bn, putting it well on the way to completing the current £1.45bn buyback by April 2026. [4]
- Guidance already raised: In October, Tesco lifted its 2025/26 adjusted operating profit forecast to £2.9–3.1bn and declared a higher interim dividend of 4.8p per share, paid on 21 November. [5]
- Social impact in focus: The group’s Winter Food Collection with FareShare and the Trussell Trust runs across UK stores this week, alongside continuing attention on its trial of £0 “yellow sticker” food‑waste reductions after 9.30pm in selected Express stores. [6]
Today’s main regulatory news: another chunk of the buyback cancelled
Tesco’s latest Regulatory News Service (RNS) filing, time‑stamped 07:00 (RNS No. 1740J), confirms that the company bought back and will cancel 4,242,764 ordinary shares of 6⅓p each on 26 November 2025. [7]
Key details from the filing:
- Number of shares bought: 4,242,764
- Average price paid:451.57p per share
- Price range:446.10p–456.40p
- Broker: Citigroup Global Markets Limited
- Shares in issue after cancellation:6,438,104,006
- Total repurchased since April:298,737,756 shares, costing £1,213.5m
Today’s announcement is part of Tesco’s £1.45bn share buyback programme, launched on 10 April 2025 and scheduled to run until April 2026. The company has said that by the end of this period, it expects to have bought back around £3.3bn of shares since 2019, significantly shrinking its equity base and lifting earnings per share. [8]
For existing shareholders, ongoing cancellations mean:
- A smaller share count, so each remaining share represents a larger slice of future earnings and dividends.
- A signalling effect that management is confident enough in cash generation to return capital rather than hoard it.
Tesco share price today: trading around 455p, near the top of its range
Market data from Shares Magazine and other providers show Tesco shares trading around 455p in late morning London trade on Thursday, 27 November 2025, up modestly on the day. [9]
A few notable numbers:
- Live quote (11:52): 455.04p, up 0.36% on the session. [10]
- Previous close (26 Nov): 453.40p, a 1.86% gain on Tuesday’s close, with an intraday range of 445.60p–456.50p. [11]
- Recent history: Over the last month, Tesco has traded between 434.80p and 480.90p; over the last 12 months, the range has been 310.30p–480.90p. [12]
That leaves the stock:
- Roughly 45–46% above its 52‑week low
- Around 6% below its recent 52‑week high
On valuation, Shares Magazine’s snapshot puts Tesco on a price/earnings ratio of about 19.6x and a dividend yield around 3.2%, based on a dividend per share close to 9p. [13]
Those metrics are broadly in line with a “quality defensive” profile: not the cheapest name on the FTSE 100, but one where investors are paying a premium for stable cash flows, strong market share and visible capital returns.
Why Tesco is leaning so hard into buybacks
The £1.45bn buyback announced in April is the latest phase in Tesco’s long‑running effort to simplify its balance sheet and return surplus cash. Tesco’s own shareholder centre materials say the current programme is intended to be completed by April 2026, at which point cumulative buybacks since 2019 will exceed £3bn. [14]
Several factors help explain the pace of repurchases:
- Improved profitability and free cash flow
In its 2025/26 interim results published in October, Tesco reported a 1.5% rise in adjusted operating profit to £1.67bn for the first half and raised its full‑year adjusted operating profit guidance to £2.9–3.1bn, up from £2.7–3.0bn previously. [15] - Market share gains
UK like‑for‑like sales were up 4.9% in the first half, and industry data cited by Tesco indicates it has grown its grocery market share to around 28.4%, more than any other major UK grocer this year. [16] - Discounters held at bay (for now)
Tesco’s strategy of matching Aldi’s prices on hundreds of key items, combined with deep Clubcard promotions and a growing online and marketplace business, has kept customer volumes resilient despite tough competition and easing food inflation. [17] - Balance‑sheet discipline
With leverage under control and no transformational acquisitions on the horizon, buybacks are currently the simplest route for management to return cash and support per‑share metrics.
From an investor’s perspective, today’s RNS shows that Tesco is still buying stock aggressively even with shares near the top of their 12‑month range, which will be read as a vote of confidence in the medium‑term earnings outlook.
Dividends: interim payout just landed
Alongside buybacks, Tesco continues to return cash via ordinary dividends:
- The 2025/26 interim dividend of 4.8p per share was approved on 1 October 2025 and paid on 21 November 2025 to shareholders on the register as of 10 October. [18]
Combined with the prior full‑year distribution, that puts the trailing dividend yield at roughly 3.2% at today’s share price, according to market data. [19]
Buybacks plus dividends together mean Tesco is now returning a meaningful percentage of its market capitalisation to shareholders every year, while still investing in price, service and growth initiatives.
Winter Food Collection and 0p “yellow stickers”: social impact in focus
While today’s headline corporate news is all about buybacks, Tesco’s social and sustainability agenda is also very visible this week.
Winter Food Collection kicks off in stores
Earlier this week Tesco announced its 2025 Winter Food Collection, run in partnership with food redistribution charity FareShare and the Trussell Trust network of food banks. The campaign aims to boost stocks of essential long‑life items heading into what both charities expect to be a particularly tough winter, with food parcels forecast to be needed every few seconds across the UK. [20]
Volunteer listings on the Trussell Trust site show collection points running in Tesco superstores from 27–29 November 2025, including locations such as Whitehaven and Workington, where volunteers hand out donation lists and gather items at store exits. [21]
The Winter Food Collection has become a fixture of Tesco’s community calendar, with previous campaigns helping collect millions of meals’ worth of food for people in crisis. [22]
£0 “yellow stickers” trial draws renewed attention
Tesco is also back in the spotlight over its trial of £0 “yellow sticker” reductions on short‑dated food in selected Tesco Express stores:
- Items nearing expiry are labelled with yellow stickers showing a £0 price instead of the usual low discounted price (traditionally as low as around 90p). [23]
- Shoppers visiting participating stores after 9.30pm can take these items home for free, subject to store availability. [24]
- The pilot is part of Tesco’s push to halve food waste by 2025 and supports its wider net‑zero ambitions. [25]
The scheme first hit the headlines back in March, but it resurfaced in today’s news cycle via Sky News’ Money blog, which highlighted “Tesco introduces £0 yellow stickers for groceries after 9:30pm” while covering the UK Budget and cost‑of‑living measures. [26]
For shoppers struggling with bills, the combination of free short‑dated food, Clubcard discounts and Tesco’s broader price‑matching strategy adds an extra dimension to the group’s role in the cost‑of‑living landscape.
How today’s developments fit into Tesco’s bigger 2025 story
Putting everything together, here’s how today’s news slots into the wider picture for Tesco investors:
- Capital returns remain front and centre
The new buyback RNS confirms that Tesco is continuing to retire shares at pace, even after almost £1.2bn spent since April. With the programme not due to finish until April 2026, further daily “Transaction in Own Shares” notices look likely. [27] - Operational momentum supports the strategy
Raised profit guidance, steady like‑for‑like sales growth and market‑share gains suggest Tesco has the earnings power to support both investment in the business and shareholder distributions. [28] - Defensive appeal with a social angle
Tesco’s positioning as a defensive dividend payer is strengthened by its community work and sustainability initiatives, from the Winter Food Collection to the 0p yellow‑sticker trial – themes that resonate with ESG‑minded investors and consumers alike. [29] - Risks still on the radar
Management has repeatedly warned that competitive intensity in UK grocery “remains elevated”, and easing food inflation plus heavy festive promotions could compress margins in the second half, even if volumes hold up. Analysts at firms like Bernstein have already suggested Tesco’s second‑half profit assumptions are relatively conservative, implying less room for error if trading weakens. [30]
What it could mean for different types of investors
The following is general information, not personal investment advice.
- Income investors:
A 3%‑plus dividend yield backed by strong cash generation and a consistent payout policy, plus the turbo‑boost from buybacks, will appeal to those seeking relatively stable income from a consumer staple name. [31] - Growth‑at‑a‑reasonable‑price (GARP) investors:
With the stock trading on a mid‑teens to high‑teens earnings multiple and still delivering volume and market‑share growth, Tesco fits the profile of a steady compounder rather than a hyper‑growth play. [32] - ESG‑focused investors:
The Winter Food Collection and food waste‑reduction initiatives show Tesco trying to align its business model with social and environmental goals, although some may still scrutinise questions around supply chains, labour practices and pricing power. [33]
As ever, anyone considering Tesco shares should look beyond today’s buyback headlines and assess valuation, competitive risks and their own risk tolerance before making decisions.
All share prices and financial figures are correct as of market data available on 27 November 2025 and may change thereafter. This article is for information only and does not constitute financial advice.
References
1. www.sharesmagazine.co.uk, 2. www.sharesmagazine.co.uk, 3. www.sharesmagazine.co.uk, 4. www.sharesmagazine.co.uk, 5. www.reuters.com, 6. www.tescoplc.com, 7. www.sharesmagazine.co.uk, 8. www.tescoplc.com, 9. www.sharesmagazine.co.uk, 10. www.sharesmagazine.co.uk, 11. stockinvest.us, 12. stockinvest.us, 13. www.sharesmagazine.co.uk, 14. www.tescoplc.com, 15. www.reuters.com, 16. www.reuters.com, 17. www.reuters.com, 18. www.stockopedia.com, 19. www.sharesmagazine.co.uk, 20. www.tescoplc.com, 21. volunteer.trussell.org.uk, 22. www.grocerygazette.co.uk, 23. www.grocerygazette.co.uk, 24. www.grocerygazette.co.uk, 25. www.grocerygazette.co.uk, 26. news.sky.com, 27. www.sharesmagazine.co.uk, 28. www.reuters.com, 29. www.tescoplc.com, 30. www.reuters.com, 31. www.sharesmagazine.co.uk, 32. www.sharesmagazine.co.uk, 33. www.tescoplc.com
