LOS ANGELES, March 17, 2026 (GLOBE NEWSWIRE) -- The Portnoy Law Firm advises Grocery Outlet Holding Corp., (“Grocery Outlet” or the "Company") (NASDAQ: GO) investors off a class action on behalf of investors that bought securities between August 5, 2025 and March 4, 2026, inclusive (the “Class Period”). Grocery Outlet investors have until May 15, 2026 to file a lead plaintiff motion.
Investors are encouraged to contact attorney Lesley F. Portnoy, by phone 310-692-8883 or email: lesley@portnoylaw.com, to discuss their legal rights, or join the case via http://portnoylaw.com/grocery-outlet-holding-corp. The Portnoy Law Firm can provide a complimentary case evaluation and discuss investors’ options for pursuing claims to recover their losses.
Grocery Outlet operates as a retailer of consumables and fresh products sold through independently operated stores.
The Grocery Outlet class action lawsuit alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (i) Grocery Outlet had “expanded too quickly” into new stores; (ii) Grocery Outlet’s purportedly strong financial and operational growth was being artificially supported by excessive, rapid store expansion; (iii) as a result, Grocery Outlet was unable to achieve the sustainable growth required to meet its previously set guidance; and (iv) Grocery Outlet’s Restructuring Plan would require further optimization to achieve its operational goals, including significant store closures and asset write-downs.
The Grocery Outlet class action lawsuit further alleges that on March 4, 2026, Grocery Outlet announced results for the fourth quarter and full fiscal year 2025, revealing Grocery Outlet’s full year financial results which missed guidance on nearly every major financial metric. Grocery Outlet allegedly reported full year 2025 adjusted EBITDA of $254.3 million (missing prior guidance of $258 at the low end); net sales of $4.69 billion (missing prior guidance of $4.70 billion at the low end); comparable store sales which increased by 0.5% on a 52-week basis (missing prior guidance of 0.6% to 0.9%); and diluted adjusted earnings per share of $0.76 (missing prior guidance of $0.78 at the low end). The complaint also alleges Grocery Outlet revealed it was adding an additional “optimization plan” on top of its “restructuring plan,” and “reshaping [its] new store growth strategy” including the “closure of 36 financially underperforming stores.” Further, Grocery Outlet allegedly also “determined that the long-lived assets of the Closure Stores were impaired, and recognized $110 million of non-cash charges in Impairment of long-lived assets on the condensed consolidated statements of operations and comprehensive income (loss).” Finally, the Grocery Outlet class action lawsuit alleges that Grocery Outlet stated that it estimates “between $14 million and $25 million in net total restructuring charges in fiscal 2026, including between $51 million and $63 million of estimated cash expenditures primarily for lease termination fees, and between $11 million and $14 million of bad debt expense, partially offset by net non-cash write-off of right-of-use assets and lease liabilities associated with these leases of between $(48) million and $(52) million.” On this news, the price of Grocery Outlet stock fell nearly 28%, according to the complaint.
The Portnoy Law Firm represents investors in pursuing claims caused by corporate wrongdoing. The Firm’s founding partner has recovered over $5.5 billion for aggrieved investors. Attorney advertising. Prior results do not guarantee similar outcomes.
Lesley F. Portnoy, Esq.
Admitted CA, NY and TX Bar
lesley@portnoylaw.com
310-692-8883
www.portnoylaw.com
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