Zacks Research Predicts Lower Earnings for Grocery Outlet

Grocery Outlet Holding Corp. (NASDAQ:GO) – Analysts at Zacks Research decreased their Q1 2026 earnings estimates for shares of Grocery Outlet in a research note issued on Wednesday, March 18th. Zacks Research analyst Team now forecasts that the company will post earnings per share of ($0.03) for the quarter, down from their prior forecast of $0.11. The consensus estimate for Grocery Outlet’s current full-year earnings is $0.63 per share. Zacks Research also issued estimates for Grocery Outlet’s Q2 2026 earnings at $0.13 EPS, Q3 2026 earnings at $0.18 EPS, Q4 2026 earnings at $0.10 EPS, FY2026 earnings at $0.39 EPS, Q1 2027 earnings at ($0.02) EPS, Q2 2027 earnings at $0.15 EPS, Q3 2027 earnings at $0.20 EPS, Q4 2027 earnings at $0.11 EPS and FY2027 earnings at $0.45 EPS.

Grocery Outlet (NASDAQ:GO) last released its quarterly earnings data on Wednesday, March 4th. The company reported $0.19 EPS for the quarter, missing analysts’ consensus estimates of $0.21 by ($0.02). Grocery Outlet had a positive return on equity of 5.93% and a negative net margin of 4.80%.The company had revenue of $1.22 billion for the quarter, compared to analysts’ expectations of $1.23 billion. During the same period in the prior year, the firm posted $0.15 EPS. The firm’s quarterly revenue was up 10.7% on a year-over-year basis. Grocery Outlet has set its FY 2026 guidance at 0.450-0.550 EPS.

A number of other research firms have also recently weighed in on GO. Telsey Advisory Group cut Grocery Outlet from an “outperform” rating to a “market perform” rating and lowered their price target for the stock from $15.00 to $9.00 in a report on Thursday, March 5th. DA Davidson set a $8.00 target price on Grocery Outlet in a research report on Thursday, March 5th. Deutsche Bank Aktiengesellschaft set a $11.00 target price on Grocery Outlet in a report on Thursday, January 8th. Weiss Ratings restated a “sell (d)” rating on shares of Grocery Outlet in a research report on Thursday, January 22nd. Finally, TD Cowen reiterated a “hold” rating on shares of Grocery Outlet in a research report on Thursday, March 5th. Eleven research analysts have rated the stock with a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat.com, Grocery Outlet has an average rating of “Reduce” and an average price target of $10.68.

Grocery Outlet Price Performance

GO stock opened at $5.79 on Monday. The firm has a 50 day moving average of $8.89 and a 200-day moving average of $11.67. The company has a market cap of $568.29 million, a price-to-earnings ratio of -2.53, a PEG ratio of 1.69 and a beta of 0.50. The company has a current ratio of 1.37, a quick ratio of 0.32 and a debt-to-equity ratio of 0.49. Grocery Outlet has a 12-month low of $5.66 and a 12-month high of $19.41.

Institutional Trading of Grocery Outlet

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Aster Capital Management DIFC Ltd raised its stake in Grocery Outlet by 1,030.4% in the 4th quarter. Aster Capital Management DIFC Ltd now owns 2,532 shares of the company’s stock valued at $26,000 after purchasing an additional 2,308 shares during the last quarter. Bayforest Capital Ltd acquired a new stake in shares of Grocery Outlet during the 3rd quarter worth about $29,000. Hantz Financial Services Inc. grew its holdings in shares of Grocery Outlet by 591.5% during the third quarter. Hantz Financial Services Inc. now owns 2,033 shares of the company’s stock worth $33,000 after buying an additional 1,739 shares in the last quarter. Kestra Advisory Services LLC purchased a new stake in shares of Grocery Outlet during the fourth quarter worth about $35,000. Finally, PNC Financial Services Group Inc. raised its position in shares of Grocery Outlet by 32.3% in the second quarter. PNC Financial Services Group Inc. now owns 2,942 shares of the company’s stock valued at $37,000 after buying an additional 719 shares during the last quarter. Hedge funds and other institutional investors own 99.87% of the company’s stock.

Insider Transactions at Grocery Outlet

In related news, CEO Jason J. N. Potter purchased 286,097 shares of the company’s stock in a transaction on Thursday, March 19th. The stock was bought at an average price of $5.90 per share, with a total value of $1,687,972.30. Following the completion of the transaction, the chief executive officer owned 574,366 shares of the company’s stock, valued at approximately $3,388,759.40. This represents a 99.25% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Erik D. Ragatz purchased 50,000 shares of the business’s stock in a transaction dated Thursday, March 19th. The stock was bought at an average cost of $5.75 per share, with a total value of $287,500.00. Following the completion of the acquisition, the director owned 526,500 shares of the company’s stock, valued at approximately $3,027,375. The trade was a 10.49% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. In the last quarter, insiders have bought 787,097 shares of company stock worth $4,679,132 and have sold 89,493 shares worth $524,431. Corporate insiders own 4.50% of the company’s stock.

Trending Headlines about Grocery Outlet

Here are the key news stories impacting Grocery Outlet this week:

• Positive Sentiment: Director insider buying: Director Erik D. Ragatz substantially increased his stake, buying 33,997 shares on March 18 (~$5.85/sh) and a reported 50,000 shares on March 19 (~$5.75/sh), raising his direct holdings to ~526,500 shares. Insider purchases at current low prices can signal management confidence and provide short‑term support. InsiderTrades: Director Purchases
• Neutral Sentiment: Company profile/operations story: A feature on Grocery Outlet’s opportunistic sourcing and discount model ran on MSN, useful context for revenue and margin drivers but unlikely to move the stock materially by itself. MSN: How Grocery Outlet’s food gets onto its shelves
• Negative Sentiment: Multiple class‑action / shareholder alerts: Several law firms (Pomerantz, Robbins LLP, Bernstein Liebhard, Faruqi & Faruqi, Levi & Korsinsky, etc.) have announced or reminded investors of securities‑fraud suits covering Aug. 5, 2025–Mar. 4, 2026, and set lead‑plaintiff deadlines (commonly May 15, 2026). The proliferation of filings increases legal and reputational risk, may raise defense or settlement costs, and typically weighs on the stock until resolved. Pomerantz investor alert on GO class action
• Negative Sentiment: Analyst and estimate pressure: Following the March 4 quarter (missed EPS and slightly light revenue) sell‑side firms have cut targets/ratings and services such as Zacks have trimmed multi‑year EPS views (e.g., FY2028 view lower than consensus). Downward revisions and “hold/reduce” stances constrain upside until earnings/guidance stabilize. (See recent analyst notes and coverage summaries.)

Grocery Outlet Company Profile

Grocery Outlet Holding Corp. (NASDAQ: GO) is a specialty discount retailer that offers consumers deeply discounted groceries by purchasing excess inventory, closeouts, and overstocks from manufacturers and distributors. Headquartered in Emeryville, California, the company operates two primary banners—Grocery Outlet and Fresh2Go—with a combined footprint of more than 400 stores. Its product assortment spans fresh produce, meat, dairy, bakery items, household staples, natural and organic offerings, and select specialty products, all sold at significant markdowns compared to conventional supermarkets.

The company’s unique buying model enables it to source inventory through opportunistic purchases of surplus freight, discontinued items, and closeout deals, which it then passes on as savings to its customers.