Grocery Outlet Holding Corp. (GO)

Grocery Outlet's stock has experienced a generally downward trajectory since its IPO in June 2019. In November 2025, the company reported third-quarter results with revenue growth of 5.4% and same-store sales growth of 1.2%, but gross margin fell by 70 basis points. UBS assigned a neutral grade with a hold action in November 2025, and Telsey Advisory downgraded the stock to market perform in October 2025. Concerns were raised in August 2025 about poor same-store sales growth outlook for the near term. In January 2026, there was positive sentiment about a potential turnaround with a new CEO and the closure of Amazon Fresh stores. In February 2026, Grocery Outlet launched its first shoppable livestream series and partnered with Feeding America to provide two million meals. Insider trading activity in the past six months primarily shows sales by executives, with one buy transaction by Erik Ragatz in May 2025.

Grocery Outlet's business model incorporates seasonality through opportunistic buying of surplus, closeouts, discontinued, and seasonal products. While demand is driven by budget-conscious consumers, product availability fluctuates with seasons due to its sourcing strategy. The 'treasure hunt' shopping experience encourages frequent visits, mitigating seasonal dips in traffic. Specific product categories like fresh produce experience demand seasonality, and the company's ability to source seasonal overstocks allows it to offer discounted prices.

Grocery Outlet Holding Corp. operates as an extreme value retailer, offering name-brand consumables and fresh products through independently operated stores across the U.S. Their products are priced 40% to 70% below conventional retailers, including perishable and non-perishable items, as well as a specialized NOSH section. The company sources inventory from over 4,000 suppliers, focusing on surplus, closeouts, discontinued, and seasonal products.

Grocery Outlet operates over 550 stores across 16 states in the United States. Its presence is predominantly along the U.S. West Coast, with stores in California, Oregon, Washington, Idaho, and Nevada. In recent years, the company has expanded its reach into the mid-Atlantic and southeastern regions, with locations in Pennsylvania, New Jersey, Maryland, Ohio, Tennessee, North Carolina, Georgia, Alabama, Kentucky, and Virginia. The company also owns United Grocery Outlet, which has over 40 stores in the southeastern U.S.

Grocery Outlet's brand reputation has been shaped by its commitment to its mission and focus on value and opportunities. The company published its first annual ESG Report in October 2023, highlighting its positive impact on communities, people, and the planet. In July 2025, the 2024 Impact Report detailed the success of the Independence from Hunger® Campaign and the inaugural GO Volunteer Day. Grocery Outlet is also undergoing a store refresh plan to improve its business model, with early results showing promising comparable store sales growth.

Grocery Outlet Holding Corp. has significant institutional ownership, with 508 institutional owners and shareholders holding 141,820,078 shares as of January 23, 2026. Major shareholders include BlackRock, Inc., Fmr Llc, Vanguard Group Inc, and T. Rowe Price Investment Management, Inc. Vanguard Fiduciary Trust Co. holds 11.47% of equities, and T. Rowe Price Investment Management, Inc. holds 10.43%. Individuals hold 4.68% of the company's shares.