Grocery Outlet (NASDAQ:GO) Shares Gap Up Following Better-Than-Expected Earnings

Posted by George Bondi on May 14th, 2026

Shares of Grocery Outlet Holding Corp. (NASDAQ:GO – Get Free Report) gapped up prior to trading on Thursday following a better than expected earnings announcement. The stock had previously closed at $7.74, but opened at $9.11. Grocery Outlet shares last traded at $7.9290, with a volume of 1,740,217 shares changing hands.

The company reported $0.05 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.02 by $0.03. Grocery Outlet had a negative net margin of 4.80% and a positive return on equity of 5.93%. The company had revenue of $1.17 billion during the quarter, compared to analysts’ expectations of $1.15 billion. During the same quarter last year, the company posted $0.13 EPS. Grocery Outlet’s quarterly revenue was up 3.6% compared to the same quarter last year. Grocery Outlet has set its FY 2026 guidance at 0.450-0.550 EPS.

Grocery Outlet News Roundup

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

Positive Sentiment: First-quarter earnings and revenue both beat Wall Street estimates, easing near-term concerns about execution. Grocery Outlet Holding Corp. Announces First Quarter Fiscal 2026 Financial Results
Positive Sentiment: Management reaffirmed its outlook and outlined Q2 EPS of $0.11 to $0.13, helping support confidence in the turnaround story. Grocery Outlet outlines Q2 2026 EPS of $0.11 to $0.13 while targeting ~100 store refreshes
Neutral Sentiment: The earnings call transcript and related coverage may give investors more detail on the company’s restructuring and store optimization plans, but they do not appear to be a separate stock-moving catalyst on their own. Full Transcript: Grocery Outlet Holding Q1 2026 Earnings Call
Negative Sentiment: Class-action lawsuit headlines remain an overhang and could keep pressure on investor sentiment, even after the earnings-driven rally. GROCERY OUTLET DEADLINE MAY 15th: Bragar Eagel & Squire, P.C. Reminds Grocery Outlet Holding Corp. Investors that a Class Action Lawsuit Has Been Filed

Wall Street Analysts Forecast Growth

A number of research firms have commented on GO. The Goldman Sachs Group lowered their price objective on Grocery Outlet from $12.00 to $9.00 and set a “sell” rating on the stock in a research note on Thursday, February 19th. Telsey Advisory Group lowered Grocery Outlet from an “outperform” rating to a “market perform” rating and reduced their target price for the stock from $15.00 to $9.00 in a report on Thursday, March 5th. DA Davidson set a $8.00 price target on Grocery Outlet in a research report on Thursday, March 5th. Wells Fargo & Company set a $9.00 price target on Grocery Outlet in a research note on Thursday. Finally, Weiss Ratings raised shares of Grocery Outlet from a “sell (d-)” rating to a “sell (d)” rating in a research report on Friday, May 1st. Eleven investment analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, Grocery Outlet has a consensus rating of “Reduce” and a consensus target price of $10.86.

Get Our Latest Stock Report on Grocery Outlet

Insider Activity at Grocery Outlet

In related news, Director Erik D. Ragatz acquired 125,000 shares of the stock in a transaction that occurred on Wednesday, March 11th. The stock was acquired at an average cost of $6.00 per share, for a total transaction of $750,000.00. Following the transaction, the director directly owned 326,500 shares in the company, valued at $1,959,000. This trade represents a 62.03% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Carey F. Jaros acquired 40,000 shares of the company’s stock in a transaction that occurred on Tuesday, March 10th. The stock was bought at an average cost of $6.26 per share, with a total value of $250,400.00. Following the purchase, the director owned 76,066 shares in the company, valued at $476,173.16. The trade was a 110.91% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Over the last three months, insiders bought 899,905 shares of company stock worth $5,396,307 and sold 89,493 shares worth $524,431. 4.50% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of GO. Thrivent Financial for Lutherans lifted its stake in shares of Grocery Outlet by 1.0% in the 2nd quarter. Thrivent Financial for Lutherans now owns 72,087 shares of the company’s stock valued at $895,000 after acquiring an additional 739 shares during the last quarter. Amalgamated Bank grew its position in Grocery Outlet by 3.5% during the 3rd quarter. Amalgamated Bank now owns 28,875 shares of the company’s stock worth $463,000 after acquiring an additional 967 shares during the last quarter. Natixis Advisors LLC increased its holdings in Grocery Outlet by 5.5% in the 3rd quarter. Natixis Advisors LLC now owns 30,320 shares of the company’s stock worth $487,000 after purchasing an additional 1,591 shares in the last quarter. Hantz Financial Services Inc. raised its position in Grocery Outlet by 591.5% in the third quarter. Hantz Financial Services Inc. now owns 2,033 shares of the company’s stock valued at $33,000 after purchasing an additional 1,739 shares during the last quarter. Finally, Bayforest Capital Ltd bought a new position in Grocery Outlet in the third quarter valued at about $29,000. 99.87% of the stock is currently owned by institutional investors and hedge funds.

Grocery Outlet Stock Down 1.1%

The stock has a market capitalization of $757.43 million, a price-to-earnings ratio of -3.34, a price-to-earnings-growth ratio of 2.34 and a beta of 0.66. The company has a quick ratio of 0.32, a current ratio of 1.37 and a debt-to-equity ratio of 0.49. The stock has a 50 day moving average price of $7.16 and a 200 day moving average price of $9.43.

Grocery Outlet Company Profile

(Get Free Report)

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.

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