Grocery Outlet (NASDAQ:GO) Shares Gap Down on Disappointing Earnings

Shares of Grocery Outlet Holding Corp. (NASDAQ:GO) gapped down before the market opened on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $8.79, but opened at $6.60. Grocery Outlet shares last traded at $6.83, with a volume of 5,250,967 shares traded.

The company reported $0.19 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.21 by ($0.02). The firm had revenue of $1.22 billion for the quarter, compared to analyst estimates of $1.23 billion. Grocery Outlet had a negative net margin of 4.80% and a positive return on equity of 5.67%. The business’s revenue was up 10.7% compared to the same quarter last year. During the same period last year, the firm posted $0.15 EPS. Grocery Outlet has set its FY 2026 guidance at 0.450-0.550 EPS.

More Grocery Outlet News

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

• Positive Sentiment: Operational cash metrics improved year‑over‑year (operating cash flow and cash balance rose), which gives some near‑term liquidity cushion. QuiverQuant Q4 summary
• Positive Sentiment: Grocery Outlet retained Gordon Brothers to market leasehold opportunities as part of its portfolio optimization — a potential source of proceeds and faster footprint rationalization. Gordon Brothers press release
• Neutral Sentiment: Top-line still grew: total revenue was up ~10.7% YoY to about $1.22B and gross profit increased, but same‑store comps weakened — a mixed operational picture. Earnings release
• Negative Sentiment: Q4 results missed estimates (EPS $0.19 vs. $0.21 expected; revenue slightly below consensus) and management reported meaningful operating losses driven by non‑cash impairment and restructuring charges. Zacks earnings coverage
• Negative Sentiment: Large non‑cash charges: management disclosed ~ $113.8M impairment of long‑lived assets, $149.0M goodwill impairment and $45.9M restructuring charges, producing an operating loss and a big swing to net loss — a major driver of investor selling. Earnings release
• Negative Sentiment: FY‑2026 guidance was lowered well below Street expectations (EPS guidance of $0.45–$0.55 vs. ~ $0.77 consensus), signaling a slower recovery and pressuring valuation. Guidance slide deck
• Negative Sentiment: Management announced closure of 36 stores tied to the fiscal‑2025 net loss, increasing near‑term execution and comps risk. The Shelby Report
• Negative Sentiment: Multiple analysts cut price targets and downgraded the stock after the report (Morgan Stanley, Wells Fargo, DA Davidson, Jefferies, Telsey and others), removing buy conviction. Benzinga analyst roundup
• Negative Sentiment: Shareholder investigations were announced by law firms (Ademi LLP and Holzer & Holzer), citing potential misstatements about financials and disclosures — a legal overhang that raises uncertainty. Ademi LLP alert Holzer & Holzer alert
• Negative Sentiment: Institutional selling and at‑least one recent insider sale were flagged in filings/third‑party data, adding to downward pressure amid the negative news flow. QuiverQuant institutional data

Wall Street Analyst Weigh In

A number of equities research analysts have recently weighed in on the company. 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. TD Cowen reaffirmed a “hold” rating on shares of Grocery Outlet in a research note on Thursday. UBS Group reiterated a “neutral” rating and set a $11.50 price target on shares of Grocery Outlet in a research report on Thursday, December 18th. DA Davidson set a $8.00 price target on Grocery Outlet in a report on Thursday. Finally, Deutsche Bank Aktiengesellschaft set a $11.00 price objective on shares of Grocery Outlet in a research note on Thursday, January 8th. One research analyst has rated the stock with a Buy rating, ten have given a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of “Reduce” and a consensus price target of $10.68.

Institutional Trading of Grocery Outlet

Hedge funds and other institutional investors have recently modified their holdings of the company. PNC Financial Services Group Inc. raised its position in Grocery Outlet by 32.3% in the second quarter. PNC Financial Services Group Inc. now owns 2,942 shares of the company’s stock worth $37,000 after purchasing an additional 719 shares in the last quarter. Thrivent Financial for Lutherans grew its stake in shares of Grocery Outlet by 1.0% in the 2nd 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 period. Bank of Montreal Can grew its stake in shares of Grocery Outlet by 5.1% in the 2nd quarter. Bank of Montreal Can now owns 16,525 shares of the company’s stock valued at $205,000 after purchasing an additional 803 shares during the period. Amalgamated Bank raised its holdings in shares of Grocery Outlet by 3.5% in the 3rd quarter. Amalgamated Bank now owns 28,875 shares of the company’s stock worth $463,000 after buying an additional 967 shares in the last quarter. Finally, Natixis Advisors LLC raised its holdings in shares of 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 in the last quarter. Institutional investors own 99.87% of the company’s stock.

Grocery Outlet Price Performance

The company has a 50-day moving average of $9.72 and a 200 day moving average of $12.70. The company has a debt-to-equity ratio of 0.40, a quick ratio of 0.25 and a current ratio of 1.30. The firm has a market cap of $622.19 million, a P/E ratio of -2.77, a P/E/G ratio of 1.79 and a beta of 0.50.

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.