Deadline Approaching: Grocery Outlet Holding Corp. (GO) Shareholders Who Lost Money Urged To Contact Law Offices of Howard G. Smith

BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith reminds investors of the upcoming May 15, 2026 deadline to file a lead plaintiff motion in the case filed on behalf of investors who purchased Grocery Outlet Holding Corp. (“Grocery Outlet” or the “Company”) (NASDAQ: GO) securities between August 5, 2025 and March 4, 2026, inclusive (the “Class Period”).

IF YOU ARE AN INVESTOR WHO SUFFERED A LOSS IN GROCERY OUTLET HOLDING CORP. (GO), CONTACT THE LAW OFFICES OF HOWARD G. SMITH TO PARTICIPATE IN THE ONGOING SECURITIES FRAUD LAWSUIT.

Contact the Law Offices of Howard G. Smith to discuss your legal rights by email at [e-mail], by telephone at [phone] or visit our website at www.howardsmithlaw.com.

What Happened?

On March 4, 2026, after the market closed, 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. The Company reported full year 2025 adjusted EBITDA of $254.3 million (missing prior guidance of $258 at the low end); net sales of $4.69 billion, (missing prior guidance of $4.70 billion at the low end); comparable store sales which increased by 0.5% on a 52-week basis (missing prior guidance of 0.6% to 0.9%), and diluted adjusted earnings per share of $0.76 (missing prior guidance of $0.78 at the low end). Moreover, the Company revealed it was adding an additional “optimization plan” on top of its “restructuring plan,” and “reshaping [its] new store growth strategy” including the “closure of 36 financially underperforming stores.” Further, the Company also “determined that the long-lived assets of the Closure Stores were impaired, and recognized $110 million of non-cash charges in Impairment of long-lived assets on the condensed consolidated statements of operations and comprehensive income (loss).” Finally, the Company stated that it estimates “between $14 million and $25 million in net total restructuring charges in fiscal 2026, including 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.”

On the same date, the Company held an earnings call in conjunction with releasing fourth quarter 2025 results. During the earnings call, the Company’s CEO, Defendant Potter, further revealed that the Company had “made the difficult decision to close 36 locations” in part because “it’s clear now that we expanded too quickly, and these closures are a direct correction.”

On this news, Grocery Outlet’s stock price fell $2.45, or 27.9%, to close at $6.34 per share on March 5, 2026, on unusually heavy trading volume.

What Is The Lawsuit About?

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (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.

If you purchased or otherwise acquired Grocery Outlet securities during the Class Period, you may move the Court no later than May 15, 2026 to ask the Court to appoint you as lead plaintiff if you meet certain legal requirements.

Contact Us To Participate or Learn More:

If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact us:

Law Offices of Howard G. Smith,
3070 Bristol Pike, Suite 112,
Bensalem, Pennsylvania 19020,
Telephone: [phone]
Email: [e-mail],
Visit our website at: www.howardsmithlaw.com.

To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action.

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