Grocery Outlet(US:GO) TMX Newsfile·2026-03-22 01:48Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against Grocery Outlet Holding Corp due to allegations of misleading statements and failure to disclose critical operational issues, particularly related to rapid store expansion and its impact on financial performance [2][5]. Financial Performance - Grocery Outlet reported full year 2025 adjusted EBITDA of $254.3 million, missing prior guidance of $258 million at the low end [6]. - The company’s net sales were $4.69 billion, falling short of the prior guidance of $4.70 billion at the low end [6]. - Comparable store sales increased by 0.5% on a 52-week basis, missing the prior guidance range of 0.6% to 0.9% [6]. - Diluted adjusted earnings per share were $0.76, below the prior guidance of $0.78 at the low end [6]. Operational Issues - The complaint alleges that Grocery Outlet expanded too quickly into new stores, which led to unsustainable growth and operational challenges [5]. - The company announced an additional "optimization plan" alongside its "restructuring plan," which includes the closure of 36 underperforming stores [6]. - The company recognized $110 million in non-cash charges related to the impairment of long-lived assets from the closure of these stores [6]. Stock Market Reaction - Following the announcement of disappointing financial results and operational changes, Grocery Outlet's stock price fell by $2.45, or 27.9%, closing at $6.34 per share on March 5, 2026 [7].