Grocery Outlet (NASDAQ:GO) Announces Earnings Results

Grocery Outlet (NASDAQ:GO) announced its quarterly earnings results on Wednesday. The company reported $0.05 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.02 by $0.03, FiscalAI reports. Grocery Outlet had a positive return on equity of 5.93% and a negative net margin of 4.80%.The firm had revenue of $1.17 billion during the quarter, compared to the consensus estimate of $1.15 billion. During the same period in the prior year, the company posted $0.13 earnings per share. The firm’s quarterly revenue was up 3.6% compared to the same quarter last year. Grocery Outlet updated its FY 2026 guidance to 0.450-0.550 EPS.

Here are the key takeaways from Grocery Outlet’s conference call:

• Grocery Outlet said Q1 results were in line with guidance, with revenue up 3.6% to $1.17 billion, comparable sales down just 1% and traffic up about 2%, signaling sequential improvement through the quarter.
• Management highlighted progress in restoring the brand’s value proposition, including a nearly 2 percentage point increase in opportunistic product mix since the start of the year, which they believe is starting to lift traffic and customer perception.
• The company is continuing promotional investments of about $20 million in 2026 to bridge the gap while opportunistic supply rebuilds, with management expecting these promotions to taper in the second half of the year.
• Grocery Outlet completed 36 planned store closures and expects the restructuring to improve the earnings profile by about $12 million on an annual run-rate basis, while also tightening new-store discipline and real-estate selection.
• The quarter included a $158 million non-cash goodwill impairment and $18.2 million of restructuring charges, resulting in a net loss of $180.3 million, though adjusted EPS was $0.05 and adjusted EBITDA came in at the top end of guidance.

Grocery Outlet Trading Up 3.4%

NASDAQ:GO opened at $8.00 on Thursday. The business’s 50-day moving average is $7.16 and its two-hundred day moving average is $9.43. The firm has a market capitalization of $791.66 million, a PE ratio of -3.75, a price-to-earnings-growth ratio of 2.34 and a beta of 0.66. Grocery Outlet has a 12 month low of $5.66 and a 12 month high of $19.41. The company has a debt-to-equity ratio of 0.49, a current ratio of 1.37 and a quick ratio of 0.32.

Insider Buying and Selling

In related news, CEO Jason J. N. Potter bought 110,252 shares of the stock in a transaction dated Monday, March 23rd. The stock was acquired at an average price of $6.35 per share, for a total transaction of $700,100.20. Following the completion of the purchase, the chief executive officer owned 684,618 shares in the company, valued at $4,347,324.30. This represents a 19.20% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Carey F. Jaros purchased 40,000 shares of Grocery Outlet stock in a transaction that occurred on Tuesday, March 10th. The shares were bought at an average cost of $6.26 per share, for a total transaction of $250,400.00. Following the completion of the transaction, the director directly owned 76,066 shares in the company, valued at $476,173.16. This represents a 110.91% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Over the last three months, insiders have bought 899,905 shares of company stock valued at $5,396,307 and have sold 89,493 shares valued at $524,431. 4.50% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Grocery Outlet

A number of large investors have recently added to or reduced their stakes in the company. Aster Capital Management DIFC Ltd lifted its holdings in Grocery Outlet by 1,030.4% in the 4th quarter. Aster Capital Management DIFC Ltd now owns 2,532 shares of the company’s stock worth $26,000 after buying an additional 2,308 shares in the last quarter. Kestra Advisory Services LLC acquired a new stake in shares of Grocery Outlet during the fourth quarter valued at about $35,000. State of Wyoming grew its stake in shares of Grocery Outlet by 96.9% during the fourth quarter. State of Wyoming now owns 7,886 shares of the company’s stock valued at $80,000 after acquiring an additional 3,880 shares in the last quarter. Olympiad Research LP purchased a new stake in shares of Grocery Outlet during the fourth quarter worth about $101,000. Finally, XTX Topco Ltd acquired a new position in shares of Grocery Outlet in the fourth quarter worth about $105,000. 99.87% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

GO has been the topic of several research reports. Morgan Stanley dropped their price objective on Grocery Outlet from $11.00 to $7.00 and set an “equal weight” rating on the stock in a report on Thursday, March 5th. TD Cowen restated a “hold” rating on shares of Grocery Outlet in a research note on Thursday, March 5th. Craig Hallum downgraded shares of Grocery Outlet from a “strong-buy” rating to a “hold” rating in a research report on Thursday, March 5th. Jefferies Financial Group reaffirmed a “hold” rating and set a $7.00 price target (down from $18.00) on shares of Grocery Outlet in a research note on Thursday, March 5th. Finally, DA Davidson set a $8.00 price objective on Grocery Outlet in a research report on Thursday, March 5th. Eleven research analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company has an average rating of “Reduce” and an average target price of $10.86.

Grocery Outlet News Summary

Here are the key news stories impacting Grocery Outlet this week:

• Positive Sentiment: First-quarter earnings and revenue both beat Wall Street estimates, easing near-term concerns about execution. Grocery Outlet Holding Corp. Announces First Quarter Fiscal 2026 Financial Results
• Positive Sentiment: Management reaffirmed its outlook and outlined Q2 EPS of $0.11 to $0.13, helping support confidence in the turnaround story. Grocery Outlet outlines Q2 2026 EPS of $0.11 to $0.13 while targeting ~100 store refreshes
• Neutral Sentiment: The earnings call transcript and related coverage may give investors more detail on the company’s restructuring and store optimization plans, but they do not appear to be a separate stock-moving catalyst on their own. Full Transcript: Grocery Outlet Holding Q1 2026 Earnings Call
• Negative Sentiment: Class-action lawsuit headlines remain an overhang and could keep pressure on investor sentiment, even after the earnings-driven rally. GROCERY OUTLET DEADLINE MAY 15th: Bragar Eagel & Squire, P.C. Reminds Grocery Outlet Holding Corp. Investors that a Class Action Lawsuit Has Been Filed

Grocery Outlet Company Profile

Grocery Outlet Holding Corp. (NASDAQ: GO) is a specialty discount retailer that offers consumers deeply discounted groceries by purchasing excess inventory, closeouts, and overstocks from manufacturers and distributors. Headquartered in Emeryville, California, the company operates two primary banners—Grocery Outlet and Fresh2Go—with a combined footprint of more than 400 stores. Its product assortment spans fresh produce, meat, dairy, bakery items, household staples, natural and organic offerings, and select specialty products, all sold at significant markdowns compared to conventional supermarkets.

The company’s unique buying model enables it to source inventory through opportunistic purchases of surplus freight, discontinued items, and closeout deals, which it then passes on as savings to its customers.