Craig-Hallum downgrades Grocery Outlet following disappointing results, guidance

As previously reported, Craig-Hallum analyst Jeremy Hamblin downgraded Grocery Outlet (GO) to Hold from Buy with a price target of $7.50, down from $21. The firm notes expectations were low heading into the company’s Q4 print, but Grocery Outlet still disappointed both in Q4 results and with much lower-than-expected 2026 guidance. Same-store sales have turned negative over the past few months, with February modestly bouncing back from January’s low point. Craig-Hallum expects investors to view turnaround plans with skepticism given a two-and-a-half-year run of largely choppy results.