Grocery Outlet Shares Plunge After Earnings Miss

Discount grocery chain reports weaker-than-expected Q1 results, sending stock tumbling

Published on Mar. 5, 2026

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Shares of Grocery Outlet Holding Corp. (NASDAQ:GO) dropped sharply after the company reported weaker-than-expected first quarter earnings. The discount grocery chain posted earnings of $0.19 per share, missing the consensus estimate of $0.21. Revenue for the quarter came in at $1.22 billion, also falling short of the $1.23 billion analysts had expected.

Why it matters

Grocery Outlet's disappointing results highlight the challenges facing the discount retail sector, as high inflation and economic uncertainty weigh on consumer spending. The company's stock has struggled in recent months, and this earnings miss will likely add to investor concerns about the business's long-term growth prospects.

The details

Grocery Outlet reported a negative net margin of 0.10% and a positive return on equity of 5.86% for the quarter. The company's revenue was up 10.7% compared to the same period last year, but this was not enough to meet analyst expectations. Grocery Outlet has set its full-year 2026 guidance at $0.45-$0.55 earnings per share.

  • Grocery Outlet reported its Q1 2026 earnings on March 5, 2026.

The players

Grocery Outlet Holding Corp.

A discount grocery chain headquartered in Emeryville, California, operating over 400 stores under the Grocery Outlet and Fresh2Go banners.

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What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident (San Francisco Chronicle)

The takeaway

Grocery Outlet's earnings miss underscores the challenges facing discount retailers as consumers pull back on spending amid economic uncertainty. The company will need to find ways to drive stronger sales and profitability to regain investor confidence.