Faruqi & Faruqi Investigating Grocery Outlet Securities Claims; Lead Plaintiff Deadline May 15, 2026

Faruqi & Faruqi, LLP, a national securities law firm, is investigating potential claims against Grocery Outlet Holding Corp. (NASDAQ: GO) and is reminding investors of the May 15, 2026 deadline to seek the role of lead plaintiff in a federal securities class action filed against the company.

The complaint alleges that Grocery Outlet and certain executives violated federal securities laws through false and/or misleading statements and/or by failing to disclose that: (1) the company had “expanded too quickly” into new stores; (2) its reported financial and operational growth was being artificially supported by excessive rapid store expansion; (3) the company was unable to achieve sustainable growth needed to meet previously issued guidance; (4) its Restructuring Plan would require further Optimization to achieve operational goals, including significant store closures and asset write-downs; and (5) as a result, positive statements about the company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

Company results and disclosed adjustments

On March 4, 2026, after the market closed, Grocery Outlet announced results for the fourth quarter and full fiscal year 2025. The company reported full-year 2025 adjusted EBITDA of $254.3 million, missing prior guidance of $258 million at the low end. It also reported net sales of $4.69 billion, missing prior guidance of $4.70 billion at the low end.

Additional reported figures included comparable store sales growth of 0.5% on a 52-week basis, below prior guidance of 0.6% to 0.9%. Diluted adjusted earnings per share were $0.76, missing prior guidance of $0.78 at the low end.

Optimization plan, store closures, and impairment charges

In its disclosure, the company stated it was adding an additional “optimization plan” on top of its “restructuring plan,” including “reshaping [its] new store growth strategy.” Grocery Outlet said it would close 36 financially underperforming stores.

The company also reported that it “determined that the long-lived assets of the Closure Stores were impaired,” and recognized $110 million of non-cash charges related to impairment of long-lived assets in its condensed consolidated statements of operations and comprehensive income (loss).

Forward-looking restructuring and related estimates

Grocery Outlet further stated it estimates between $14 million and $25 million in net total restructuring charges in fiscal 2026. The company said this includes 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).

Lead plaintiff deadline

Faruqi & Faruqi reminded investors that the deadline to seek the role of lead plaintiff in the federal securities class action is May 15, 2026.