Grocery Outlet (NASDAQ:GO) Announces Quarterly Earnings Results

Grocery Outlet (NASDAQ:GO) announced its quarterly earnings data on Tuesday. The company reported $0.16 EPS for the quarter, meeting the consensus estimate of $0.16, FiscalAI reports. Grocery Outlet had a positive return on equity of 5.84% and a negative net margin of 8.04%. The company had revenue of $1.18 billion for the quarter, compared to the consensus estimate of $1.17 billion. During the same quarter in the prior year, the company posted $0.21 EPS. Grocery Outlet’s quarterly revenue was up .9% on a year-over-year basis.

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

• Grocery Outlet returned to positive comparable sales in Q3, up 0.5%, with traffic rising 2.4%; comps exceeded guidance despite an estimated 60-basis-point drag from the Cyclospora outbreak. Management expects Q4 comps to increase 1.5%–2.5% and full-year comps to be positive 0.2%–0.4%.
• Management said a stronger opportunistic assortment is attracting new and repeat customers, lifting traffic and opportunistic units per transaction. October comps accelerated after synthetic promotions ended, and the company says opportunistic products are margin-accretive.
• Profitability remained under pressure: adjusted EBITDA fell to $59.4 million from $66.7 million a year earlier, adjusted EPS declined to $0.16 from $0.21, and gross margin contracted 40 basis points to 30.0%. Higher supply-chain costs, promotions and produce shrink contributed to the pressure.
• The company plans a measured pace of roughly 20 store openings in 2027, all in infill markets, and expects capital expenditures to decline. Management cited more consistent returns from infill stores, while noting variability in newer markets and ongoing pressure from occupancy costs.

Grocery Outlet Stock Up 1.1%

NASDAQ:GO opened at $14.02 on Wednesday. The company has a debt-to-equity ratio of 0.60, a current ratio of 1.29 and a quick ratio of 0.30. Grocery Outlet has a 1-year low of $5.66 and a 1-year high of $14.33. The company has a 50-day moving average of $12.21 and a 200 day moving average of $9.71. The firm has a market cap of $1.39 billion, a PE ratio of -3.62, a price-to-earnings-growth ratio of 9.64 and a beta of 0.64.

Insider Transactions at Grocery Outlet

In other Grocery Outlet news, insider Paul Miller purchased 8,000 shares of Grocery Outlet stock in a transaction dated Thursday, August 20th. The stock was acquired at an average price of $10.90 per share, for a total transaction of $87,200.00. Following the acquisition, the insider owned 72,171 shares in the company, valued at $786,663.90. This trade represents a 12.47% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Carey Jaros purchased 15,000 shares of Grocery Outlet stock in a transaction dated Thursday, August 27th. The stock was acquired at an average price of $11.70 per share, with a total value of $175,500.00. Following the acquisition, the director owned 60,000 shares in the company, valued at approximately $702,000. This represents a 33.33% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Company insiders own 5.60% of the company’s stock.

Key Grocery Outlet News

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

• Positive Sentiment: Q3 revenue was $1.18 billion, above the roughly $1.17 billion consensus, while earnings of $0.16 per share beat Zacks’ $0.15 estimate (and matched the $0.16 consensus cited elsewhere). Grocery Outlet Holding Corp. Surpasses Q3 Earnings and Revenue Estimates
• Neutral Sentiment: Fiscal 2026 revenue guidance of $4.70 billion to $4.72 billion is close to FactSet’s $4.70 billion estimate, offering little indication of a material sales-growth upside surprise. Grocery Outlet Fiscal 2026 Revenue Guidance
• Negative Sentiment: EPS fell from $0.21 a year earlier, and higher costs and promotional pricing are weighing on the profit outlook. That margin concern likely outweighed the sales beat in the market’s reaction. Higher Costs and Promotional Pricing Pressure Profit Outlook

Wall Street Analysts Forecast Growth

A number of analysts have recently issued reports on the stock. Deutsche Bank Aktiengesellschaft reissued a “hold” rating and set a $9.00 target price on shares of Grocery Outlet in a research note on Thursday, August 13th. Wells Fargo & Company upped their price target on shares of Grocery Outlet from $9.00 to $11.00 and gave the stock an “equal weight” rating in a report on Thursday, August 13th. UBS Group raised their price target on shares of Grocery Outlet from $10.00 to $11.50 and gave the stock a “neutral” rating in a research note on Monday, August 17th. TD Cowen initiated coverage on shares of Grocery Outlet in a report on Friday, October 30th. They set a “hold” rating for the company. Finally, Bank of America upgraded shares of Grocery Outlet from a “neutral” rating to a “buy” rating and lifted their price objective for the company from $12.50 to $15.00 in a report on Wednesday, September 30th. One investment analyst has rated the stock with a Buy rating, eleven have assigned a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, Grocery Outlet presently has a consensus rating of “Reduce” and a consensus price target of $10.50.

About Grocery Outlet

Grocery Outlet Holding Corp. operates Grocery Outlet Bargain Market, a discount grocery chain offering brand-name products and private-label items at value-oriented prices. Its stores carry a range of goods, including groceries, fresh produce, meat, dairy, frozen foods and household products. The company uses opportunistic buying to source products, which can result in changing assortments and limited-time deals. Founded in 1946 by Jim Read, Grocery Outlet has grown from a California-based business into a retailer serving communities across the western United States and parts of the East Coast.