Grocery Outlet Holding Corp.
Securities Class Action

On March 4, 2026, Grocery Outlet reported its fourth quarter and fiscal year 2025 financial results. Among other items, Grocery Outlet reported full year 2025 adjusted EBITDA of $254.3 million (missing prior guidance of $258 at the low end); net sales of $4.69 billion, (missing prior guidance of $4.70 billion at the low end); comparable store sales which increased by 0.5% on a 52-week basis (missing prior guidance of 0.6% to 0.9%), and diluted adjusted earnings per share of $0.76 (missing prior guidance of $0.78 at the low end). Moreover, the Company revealed it was adding an additional “optimization plan” on top of its “restructuring plan,” and “reshaping [its] new store growth strategy” including the “closure of 36 financially underperforming stores.” Further, Grocery Outlet also “determined that the long-lived assets of the Closure Stores were impaired, and recognized $110 million of non-cash charges in Impairment of long-lived assets on the condensed consolidated statements of operations and comprehensive income (loss).” Finally, the Company stated that it estimates “between $14 million and $25 million in net total restructuring charges in fiscal 2026, including between $51 million and $63 million of estimated cash expenditures primarily for lease termination fees, and between $11 million and $14 million of bad debt expense, partially offset by net non-cash write-off of right-of-use assets and lease liabilities associated with these leases of between $(48) million and $(52) million.” During an earnings call on the same Day, Grocery Outlet’s CEO further revealed that the Company had “made the difficult decision to close 36 locations” in part because “it’s clear now that we expanded too quickly and these closures are a direct correlation.” On this news, Grocery Outlet’s stock price fell $2.45 per share, or 27.87%, to close at $6.34 per share on March 5, 2026.