Grocery Outlet backs FY26 adjusted EPS view 45c-55c, consensus 50c

Backs FY26 revenue view $4.6B-$4.72B, consensus $4.66B. Backs FY26 adjusted EBITDA view $220M-$235M. Backs FY26 comparable store sales view down 2% to flat. The company said, “To strengthen long-term profitability and cash flow generation, improve operational execution, optimize our existing store footprint and align with our disciplined new store growth strategy, in the first quarter of fiscal 2026 we conducted a strategic, financial and operational analysis of our store fleet. Following that review, during the quarter, our Board of Directors adopted a business optimization plan that provides for the closure of 36 financially underperforming stores, including the termination, sublease or assignment of the applicable store leases, the termination, sublease or assignment of a lease for a distribution center facility that we are no longer utilizing, and the termination of operator agreements with independent operators for the Closure Stores as well as certain other store locations. Following the Board adoption of the Optimization Plan, during the first quarter of fiscal 2026, we closed 27 stores and initiated the closure process at the remaining 9 stores associated with the Lease Exits. In the second quarter of fiscal 2026, we completed the closure of the remaining 9 stores. During the first quarter of fiscal 2026, we also completed or initiated the Operator Agreement Terminations for the Closure Stores as well as certain other store locations. In addition, we increased the provision for IO notes and IO receivables reserves and wrote off uncollectible IO notes and IO receivables associated with these store locations. In connection with the Optimization Plan, we estimate we will incur between $20 million and $27 million in net total restructuring charges in fiscal 2026 and fiscal 2027, and we expect these actions to be substantially completed by the first quarter of fiscal 2027.”