Margin Rebuild Story In-Tact; Some Questions on Flow Through to Guide... 

Research evidence excerpt

Margin Rebuild Story In-Tact; Some Questions on Flow Through to Guide...

Broadlines & Hardlines

Dollar Stores - Market Overweight

DOLLAR GENERAL CORPORATION (DG) June 2, 2026

Margin Rebuild Story In-Tact; Some Questions on Flow Rating:

Through to Guide... Outperform

Price:

$107.84

The Wolfe Byte Price Target:

Dollar General's results were better than feared this morning with almost 6% $139

Prior: $135operating margins, but limited flow through to guidance raised some questions. % Upside:

We continue to like the DG story and see a clear path to rebuilding earnings power. 28.6%

View DG Model

View Comp Table

We are monitoring the delivery laps, SNAP headwinds, and promotional cadence,

which remain wild cards in 2026. Company Information

52-Week Range $95 - $158

(+/-) SSS Positive Through All 3 Months; QTD Towards Upper-End of +2.2-2.7%. Market Cap. (MM) $24,209

Mgmt noted that comps were positive all 3 months, with the best performance in Enterprise Value (MM) $38,854

220.2 Out. (MM)March (driven by calendar shifts). After the first 2 weeks were negative in 1Q (driven Shares Avg. Value Traded (MM) $607.41

by thousands of stores closed/weather), comp performance returned to the "upper SI% of Float 3.8%

end" of their range in weeks 11-13. 1Q momentum has also continued into May (some Price Performance

promo dynamics here). DG noted that tax refund tailwinds were fully offset by higher YTD LTM

fuel and lower SNAP support (still MSD percent of sales at DG). DG (19)% 11%

S&P 500 11% 28%

(+/-) Delivery Offering Continues to Ramp... 70bps Contribution in 1Q vs 80bps in

4Q. Delivery is now in 18k stores, which is in line with 3Q/4Q. 80% of orders were 170160

delivered in <1 hour, and 50% of these orders delivered made it to customers in <30 150

minutes.