Grocery Outlet (NASDAQ:GO) Issues Quarterly Earnings Results, Beats Estimates By $0.03 EPS

Key Points

• Grocery Outlet beat quarterly expectations, reporting EPS of $0.05 versus the $0.02 consensus estimate, while revenue came in at $1.17 billion, slightly above forecasts of $1.15 billion.
• The company updated its FY 2026 guidance to EPS of 0.450-0.550, giving investors a fresh outlook after the earnings release.
• Despite the earnings beat, shares fell 2.8% on Wednesday, and sentiment remains pressured by ongoing class-action lawsuit concerns and analyst ratings that are mostly cautious.

Grocery Outlet (NASDAQ:GO - Get Free Report) issued its earnings results on Wednesday. The company reported $0.05 earnings per share for the quarter, beating analysts' consensus estimates of $0.02 by $0.03, FiscalAI reports. The firm had revenue of $1.17 billion for the quarter, compared to analyst estimates of $1.15 billion. Grocery Outlet had a negative net margin of 4.80% and a positive return on equity of 5.93%. Grocery Outlet updated its FY 2026 guidance to 0.450-0.550 EPS.

Grocery Outlet Trading Down 2.8%

Shares of Grocery Outlet stock traded down $0.22 during trading on Wednesday, hitting $7.74. The company's stock had a trading volume of 5,260,135 shares, compared to its average volume of 3,375,719. The stock has a market cap of $765.64 million, a price-to-earnings ratio of -3.38, a price-to-earnings-growth ratio of 2.30 and a beta of 0.66. Grocery Outlet has a 52 week low of $5.66 and a 52 week high of $19.41. The stock has a 50-day moving average price of $7.19 and a two-hundred day moving average price of $9.49. The company has a debt-to-equity ratio of 0.49, a current ratio of 1.37 and a quick ratio of 0.32.

Key Stories Impacting Grocery Outlet

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

• Neutral Sentiment: Investors are waiting for Grocery Outlet’s Q1 2026 earnings update, with analysts looking for clues on whether value-focused shopping trends are helping sales and whether promotions and store closures are still pressuring margins. Grocery Outlet Holding Corp Q1 2026: Everything You Need To Know Ahead Of Earnings
• Neutral Sentiment: Several firms reiterated that shareholders who bought GO between August 5, 2025 and March 4, 2026 may have claims in the pending class action, with the lead-plaintiff deadline approaching on May 15. The recurring legal reminders are keeping the stock in focus, even though they do not change fundamentals directly. Deadline Alert article
• Negative Sentiment: The lawsuits allege Grocery Outlet expanded too quickly, relied on aggressive store growth to support results, and may need additional store closures and asset write-downs to complete its restructuring plan. That narrative can pressure the shares because it raises concerns about the sustainability of growth and profitability. Holzer & Holzer lawsuit reminder

Insider Buying and Selling

In related news, CEO Jason J. N. Potter acquired 286,097 shares of the stock in a transaction dated Thursday, March 19th. The stock was bought at an average cost of $5.90 per share, for a total transaction of $1,687,972.30. Following the completion of the transaction, the chief executive officer directly owned 574,366 shares of the company's stock, valued at $3,388,759.40. The trade was a 99.25% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Erik D. Ragatz acquired 125,000 shares of the business's stock in a transaction that occurred on Wednesday, March 11th. The stock was bought at an average cost of $6.00 per share, for a total transaction of $750,000.00. Following the completion of the purchase, the director owned 326,500 shares of the company's stock, valued at $1,959,000. This trade represents a 62.03% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. In the last quarter, insiders acquired 899,905 shares of company stock valued at $5,396,307 and sold 89,493 shares valued at $524,431. Insiders own 4.50% of the company's stock.

Institutional Trading of Grocery Outlet

A number of institutional investors and hedge funds have recently added to or reduced their stakes in GO. Thrivent Financial for Lutherans lifted its holdings in Grocery Outlet by 1.0% during the second quarter. Thrivent Financial for Lutherans now owns 72,087 shares of the company's stock valued at $895,000 after purchasing an additional 739 shares during the last quarter. Natixis Advisors LLC boosted its holdings in Grocery Outlet by 5.5% in the 3rd quarter. Natixis Advisors LLC now owns 30,320 shares of the company's stock worth $487,000 after buying an additional 1,591 shares during the period. Rafferty Asset Management LLC grew its stake in Grocery Outlet by 7.4% in the 2nd quarter. Rafferty Asset Management LLC now owns 27,017 shares of the company's stock valued at $336,000 after buying an additional 1,852 shares in the last quarter. CANADA LIFE ASSURANCE Co raised its holdings in Grocery Outlet by 1.7% during the 2nd quarter. CANADA LIFE ASSURANCE Co now owns 115,509 shares of the company's stock valued at $1,435,000 after acquiring an additional 1,957 shares during the period. Finally, Aster Capital Management DIFC Ltd lifted its position in shares of Grocery Outlet by 1,030.4% during the fourth 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. Institutional investors and hedge funds own 99.87% of the company's stock.

Analyst Upgrades and Downgrades

Several research analysts have recently issued reports on GO shares. Craig Hallum downgraded shares of Grocery Outlet from a "strong-buy" rating to a "hold" rating in a report on Thursday, March 5th. TD Cowen restated a "hold" rating on shares of Grocery Outlet in a research report on Thursday, March 5th. Telsey Advisory Group cut Grocery Outlet from an "outperform" rating to a "market perform" rating and lowered their target price for the stock from $15.00 to $9.00 in a report on Thursday, March 5th. Wells Fargo & Company dropped their target price on Grocery Outlet from $10.50 to $7.00 and set an "equal weight" rating for the company in a research report on Thursday, March 5th. Finally, Morgan Stanley cut their price target on Grocery Outlet from $11.00 to $7.00 and set an "equal weight" rating on the stock in a research note on Thursday, March 5th. Eleven investment analysts have rated the stock with a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Reduce" and a consensus price target of $10.68.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.