Why Grocery Outlet Stock Crashed Today

By Joe Tenebruso – Mar 5, 2026 at 10:27PM ESTKey PointsRestructuring costs dented Grocery Outlet's fourth-quarter results.The retailer is facing a host of macroeconomic challenges.Shares of Grocery Outlet (GO 27.82%) plunged on Thursday after the discount grocery chain's quarterly results fell short of investors' expectations. By the close of trading, Grocery Outlet's stock price was down more than 27%. Cash-strapped consumers are trying to reduce their expenses. Image source: Getty Images. Sluggish sales Grocery Outlet's net sales rose by 10.7% year over year to $1.22 billion in its fiscal 2025 fourth quarter, which ended on Jan. 3. However, much of the gains were due to an additional week of sales during the quarter compared to the year-ago period. Comparable store sales decreased by 0.8% on a 13-week basis. "Consumer pressure intensified, federally funded benefits were delayed, and competition grew more promotional," CEO Jason Potter said in a press release. ExpandNASDAQ: GOGrocery OutletToday's Change(-27.82%) $-2.44Current Price$6.34Key Data PointsMarket Cap$622MDay's Range$6.21 - $7.3752wk Range$6.20 - $19.41Volume637KAvg Vol2.7MGross Margin30.27% Grocery Outlet posted an operating loss of $234.8 million, driven by impairment charges related to store closures. Restructuring plan Looking ahead, management expects comparable store sales to decrease by as much as 2% in fiscal 2026. Grocery Outlet plans to close 36 stores to stem the declines. The company ended the fourth quarter with 570 locations. "We're closing underperforming stores, reshaping our new store growth strategy, and reallocating resources to strengthen operating results and returns on capital," Potter said.Read NextSep 11, 2024 •By David Jagielski, CPA3 Stocks That Haven't Been This Cheap in More Than 5 YearsNov 9, 2022 •By James BrumleyWhy Grocery Outlet Holding Is Down More Than 10% This AfternoonJul 21, 2022 •By James BrumleyI'm Buying These 3 Resilient Stocks During a Bear MarketMay 11, 2022 •By Joe TenebrusoWhy Grocery Outlet Stock Surged TodayDec 27, 2021 •By Asit Sharma, CPAA Look Back at How 5 Stock Picks Did in 2021Aug 11, 2021 •By Joe TenebrusoWhy Grocery Outlet Stock Dropped TodayAbout the AuthorJoe Tenebruso is a contributing Motley Fool stock market analyst with more than 3,000 financial bylines to his name. Joe was an investment analyst for Stock Advisor, Income Investor, Crypto Society, and other top-rated investing services. He also managed Tier 1 Investments, a market-crushing real-money portfolio with 24.58% annualized returns. Joe graduated summa cum laude from Rutgers University with a Bachelor of Science in Finance.tmfguardianX@Tier1InvestorStocks MentionedGrocery OutletNASDAQ: GO$6.35(-27.82%)-$2.45*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.