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Our Company Grocery Outlet is a growth-oriented extreme value retailer of quality, name-brand consumables and fresh products sold primarily through a network of independently operated stores. As of January 3, 2026, we had 570 stores in California, Washington, Oregon, Pennsylvania, Tennessee, Idaho, Nevada, Maryland, Ohio, New Jersey, North Carolina, Georgia, Alabama, Delaware, Kentucky and Virg…
The business is unprofitable at the operating level (-4.73% margin). The thesis depends entirely on whether and when it reaches sustainable profitability.
Revenue grew 7.3%, steady but not accelerating. Margins contracted 6.5pp, which offsets some of the top-line progress.
ROIC dropped from 2.25% to -6.20%, capital efficiency is deteriorating. Net debt of $1.74B represents 73.1x FCF, leverage limits flexibility.
Profitability & Returns
Revenue (TTM)
$4.73B
▲ +7.3% YoY
Net Income (TTM)
-$382M
▼ -669.9% YoY
Op. Margin
-7.98%
▼ -6.5pp YoY
ROIC
-16.00%
▼ -8.5pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$25M
▲ +131.9% YoY
Op. Cash Flow (TTM)
$216M
▲ +98.4% YoY
Net Debt
$430M
Cash & Equiv.
$59M
5Y CAGR: +8.4%
5Y CAGR: -15.8%
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