Grocery Outlet (NASDAQ:GO) Announces Earnings Results, Beats Expectations By $0.03 EPS

by · The Cerbat Gem

Grocery Outlet (NASDAQ:GO – Get Free Report) announced its quarterly earnings results on Wednesday. The company reported $0.05 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.02 by $0.03, FiscalAI reports. The firm had revenue of $1.17 billion during the quarter, compared to the consensus estimate of $1.15 billion. Grocery Outlet had a positive return on equity of 5.93% and a negative net margin of 4.80%. 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 Price Performance

GO stock traded down $0.22 during trading hours on Wednesday, hitting $7.74. 5,310,050 shares of the stock traded hands, compared to its average volume of 3,377,435. Grocery Outlet has a one year low of $5.66 and a one year high of $19.41. The company has a current ratio of 1.37, a quick ratio of 0.32 and a debt-to-equity ratio of 0.49. The stock has a 50-day simple moving average of $7.19 and a 200 day simple moving average of $9.49. The company has a market cap of $765.64 million, a P/E ratio of -3.38, a P/E/G ratio of 2.30 and a beta of 0.66.

Insider Buying and Selling at Grocery Outlet

In related news, CEO Jason J. N. Potter acquired 110,252 shares of the business’s stock in a transaction dated Monday, March 23rd. The stock was bought at an average price of $6.35 per share, for a total transaction of $700,100.20. Following the transaction, the chief executive officer owned 684,618 shares of the company’s stock, valued at approximately $4,347,324.30. The trade was a 19.20% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Erik D. Ragatz bought 50,000 shares of the firm’s stock in a transaction that occurred on Thursday, March 19th. The stock was bought at an average price of $5.75 per share, for a total transaction of $287,500.00. Following the completion of the acquisition, the director directly owned 526,500 shares in the company, valued at approximately $3,027,375. The trade was a 10.49% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. 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. Corporate insiders own 4.50% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the business. Aster Capital Management DIFC Ltd lifted its stake 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 acquiring an additional 2,308 shares in the last quarter. Kestra Advisory Services LLC acquired a new position in shares of Grocery Outlet in the 4th quarter valued at about $35,000. State of Wyoming boosted its holdings 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 worth $80,000 after purchasing an additional 3,880 shares during the period. Olympiad Research LP purchased a new position in Grocery Outlet during the fourth quarter valued at approximately $101,000. Finally, XTX Topco Ltd acquired a new position in Grocery Outlet in the 4th quarter valued at approximately $105,000. Hedge funds and other institutional investors own 99.87% of the company’s stock.

Analysts Set New Price Targets

GO has been the topic of several analyst reports. 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. DA Davidson set a $8.00 price target on Grocery Outlet in a research report on Thursday, March 5th. Weiss Ratings upgraded shares of Grocery Outlet from a “sell (d-)” rating to a “sell (d)” rating in a research note on Friday, May 1st. Craig Hallum cut Grocery Outlet from a “strong-buy” rating to a “hold” rating in a research note on Thursday, March 5th. Finally, Wells Fargo & Company cut their price target on Grocery Outlet from $10.50 to $7.00 and set an “equal weight” rating on the stock in a report on Thursday, March 5th. Eleven analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Reduce” and an average price target of $10.68.

Read Our Latest Stock Report on GO

Trending Headlines about Grocery Outlet

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

  • Positive Sentiment: Grocery Outlet beat first-quarter EPS and revenue expectations, showing demand remained solid heading into the new fiscal year. View Press Release
  • Neutral Sentiment: FY 2026 guidance points to moderate earnings and revenue growth, but the outlook is broadly close to Wall Street’s expectations. Article Title
  • Negative Sentiment: Multiple law firms continue to publicize a pending securities class action, which adds legal overhang and can weigh on investor sentiment. Article Title

Grocery Outlet Company Profile

(Get Free Report)

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.

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