NANTUCKET TAKES: Value Momentum Building On Strong Execution

Research evidence excerpt

NANTUCKET TAKES: Value Momentum Building On Strong Execution

USA | Discount Retailers

Dollar General EquityJuneResearch18, 2026

FLASH NOTENANTUCKET TAKES: Value Momentum Building

RATING BUYOn Strong Execution

PRICE $113.75^

In Nantucket, we met with Donny Lau (CFO), Kevin Walker (IR), and Marianne

Denenberg (IR). Mgmt emphasized improving execution across pricing, PRICE TARGET | % TO PT $135.00 | +19%

operations, and merchandising, to drive steady traffic and margin expansion. 52W HIGH-LOW $158.23 - $95.11

We will continue to monitor the durability of traffic gains and margin expansion, FLOAT (%) | ADV MM (USD) 98.7% | 468.07

particularly as compares toughen, with incremental levers like DG's RMN MARKET CAP $25.2B

offering upside ahead. TICKER DG ^Prior trading day's closing price unless otherwise

noted.

MET WITH MGMT. We met with Donny Lau (EVP and CFO), Kevin Walker (VP of IR), and Marianne

Denenberg (Senior Director of IR) to discuss recent performance, consumer trends, pricing strategy,

and margin drivers. Mgmt highlighted improving execution, merchandising, and supply chain,

alongside confidence in value positioning and emerging growth vectors.

Consumer Trends, Inflation, And Traffic Drivers. Mgmt continues to see a pressured core

consumer, with elevated fuel costs and reduced SNAP benefits weighing on spend. In response,

customers are shopping more frequently but with smaller baskets. At the same time, mgmt is

seeing trade down from higher-income cohorts, particularly as value becomes more top-of-mind.

Our Take: Increased frequency and trade down are offsetting basket pressure, suggesting DG is winning

on relevance even in a constrained environment.

Pricing Strategy and Value Architecture. Mgmt emphasized that expectations regarding value