Grocery Outlet(US:GO) Globenewswire·2026-03-17 20:56Core Viewpoint - A class action lawsuit has been filed against Grocery Outlet Holding Corp. concerning allegations of securities fraud and unlawful business practices [2]. Financial Performance - Grocery Outlet reported its fiscal year 2025 financial results, with adjusted EBITDA of $254.3 million, net sales of $4.69 billion, and diluted adjusted earnings per share of $0.76, all missing prior guidance [3]. - Comparable store sales increased by 0.5% on a 52-week basis, which was below the expected range of 0.6% to 0.9% [3]. Strategic Changes - The company announced an "optimization plan" in addition to its existing "restructuring plan," which includes the closure of 36 underperforming stores [3]. - Grocery Outlet recognized $110 million in non-cash charges related to the impairment of long-lived assets from the closure of these stores [3]. - Estimated restructuring charges for fiscal 2026 are projected to be between $14 million and $25 million, with significant cash expenditures for lease terminations and bad debt expenses [3]. Market Reaction - Following the announcement of the financial results and strategic changes, Grocery Outlet's stock price fell by $2.45 per share, or 27.87%, closing at $6.34 per share on March 5, 2026 [3].