Street View: Higher traffic drives Dollar General’s growth amid turnaround efforts

Dollar General DG.N raised its annual profit forecast after beating third-quarter earnings estimates on Thursday, as value-seeking shoppers across income levels flock to its stores amid economic uncertainty

Average rating of 30 analysts is "buy"; median PT is $128 - data compiled by LSEG

OUTLOOK RAISED AMID TURNAROUND MOMENTUM

JP Morgan ("neutral"; PT: $128) says co's strong quarter was driven by broad-based same-store sales growth entirely from higher traffic, as low-income shoppers and trade-down from middle-to-higher income cohorts boosted demand across all categories

Piper Sandler ("neutral"; PT: $129) says Q4 appears to be off to a good start; growth was broad-based, with market share gains across all income cohorts, but outsized growth coming from higher income households

Jefferies ("buy"; PT: $142) sees improving execution and real estate expansion supporting long-term targets

Telsey Advisory ("market perform"; PT: $130) says the company is transitioning to a mature retailer from a growth retailer, as visible from its decision to slow unit growth, focus more on in-store enhancements and improve in-store profitability through effective operations and cost management

Adds remain concerned about the health of the co's core lower-income consumer, increased competition and macro factors, such as tariffs and inflation