Grocery Outlet sinks to record low after downbeat forecasts, multiple rating downgrades

Shares of discount supermarket chain Grocery Outlet GO.O fall by 25.7% to a record low of $6.53

Co, after market close on Wednesday, forecast annual net sales between $4.60 billion and $4.72 billion, below estimates of $4.81 billion - data compiled by LSEG

GO expects 2026 adjusted EPS between 45 cents and 55 cents, below estimates of 69 cents

Consumer pressure intensified, federally funded benefits were delayed and competition grew more promotional in the fourth quarter, CEO Jason Potter said

Jefferies downgrades stock to "hold" from "buy"; says prior optimism around cleaner reset and faster execution recovery has faded, given heavier reliance on promotions to prop up volumes at expense of margins and profit growth

Telsey Advisory Group also downgrades stock to "market-perform" from "outperform," cites loss of value proposition, intense competition and lack of e-commerce functionalities

Average rating of 14 brokerages is "hold"; median PT is $10 - data compiled by LSEG

GO down 35.3% in 2025