Overview

A class action lawsuit has been filed against Grocery Outlet Holding Corp. (“Grocery Outlet” or the “Company”) (NASDAQ : GO), certain of the Company’s senior executive officers (collectively, “Defendants”), alleging violations of the federal securities laws. The Grocery Outlet lawsuit is brought on behalf of all persons and entities who purchased or otherwise acquired Grocery Outlet securities between August 5, 2025, and March 4, 2026, inclusive (the “Class Period”). Investors have until May 15, 2026, to seek appointment as lead plaintiff of the Grocery Outlet class action lawsuit.

Grocery Outlet operates as a retailer of consumables and fresh products sold through independently operated stores in the United States.

The Company initiated a restructuring plan during the fourth quarter of fiscal 2024, which was purportedly substantially completed in the second quarter of fiscal 2025, intended to improve long-term profitability, cash flow generation and return on invested capital, optimize the footprint of new store growth and lower the Company’s cost base (the “Restructuring Plan”). From the second quarter of fiscal 2025 onwards, the Company touted its strong financial and operating performance, driven by rapid new store openings each quarter, supported by the success of the Restructuring Plan.

The complaint alleges that Defendants misled investors by failing to disclose: (1) the Company had “expanded too quickly” into new stores; (2) the Company’s purportedly strong financial and operational growth was being artificially supported by excessive rapid store expansion; (3) as a result, the Company was unable to achieve the sustainable growth required to meet its previously set guidance; (4) the Company’s Restructuring Plan would require further Optimization to achieve its operational goals, including significant store closures and asset write-downs; and (5) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

The truth was revealed on March 4, 2026, when Grocery Outlet announced results for the fourth quarter and full fiscal year 2025, revealing the Company’s full year financial results which missed guidance on nearly every major financial metric. Specifically, the Company reported full year 2025 adjusted EBITDA of $254.3 million (missing prior guidance of $258 million at the low end) and net sales of $4.69 billion, (missing prior guidance of $4.70 billion at the low end).

On this news, Grocery Outlet’s stock price fell $2.45, or nearly 28%, to close at $6.34 per share on March 5, 2026.

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If you purchased or otherwise acquired Grocery Outlet securities between August 5, 2025, and March 4, 2026, and you wish to serve as lead plaintiff in this lawsuit, you are encouraged to submit your information to DiCello Levitt LLP via the form on this page. 

You can also contact DiCello Levitt attorneys Brian O’Mara and Hani Farah by calling (888) 287-9005 or at investors@dicellolevitt.com. 

The deadline to apply to the Court to serve as a lead plaintiff in the Grocery outlet class action lawsuit is May 15, 2026.