Grocery Outlet Holding Corp "Working On Getting The Ingredients Right" (Neutral)

研报英文原文证据摘录

Grocery Outlet Holding Corp "Working On Getting The Ingredients Right" (Neutral)

Global Research

13 May 2026ab

Grocery Outlet Holding Corp Equities

AmericasWorking On Getting The Ingredients Right

Food Retailers & Wholesalers

12-month rating Neutral

Some signs of optimism for GO in 1Q, even as its comp remained negative

We think GO made some strides in 1Q as it looks to regain its footing as a go to 12m price target US$10.00

destination for value shoppers. Its traffic increased sequentially throughout the period,

which we believe was supported in part by improvements to its value proposition. Its

Price (13 May 2026) US$9.08

price investments are gaining traction, and we note that the company also has improved

its opportunistic mix by nearly 2 percentage points since the start of the year. It's largely RIC: GO.O BBG: GO US

past its systems issues, which we believe should give it more control over its price

Trading data and key metrics

positioning relative to competitors going forward. Still, it's got plenty of work to do. Its

52-wk range US$18.66-5.79

soft average basket more than offset its traffic gains. It's reduced the number of store

refreshes it's doing to ~100 from ~150 for the full year as it looks to optimize pacing. Market cap. US$0.76b

Finally, its implied 2Q same store sales guidance calls for a deceleration, which raised Shares o/s 98.4m (COM)

some eyebrows. All in, we think GO needs to demonstrate further progress in the Free float 23%

coming quarters before its multiple rerates higher. We maintain our Neutral rating and Avg. daily volume ('000) 3,849

$10 price target. Avg. daily value (m) US$28

Common s/h equity (12/26E) US$0.92b

GO's -1.0% comp beat our & the consensus estimate of -2.0%. We think its

P/BV (12/26E) 1.0x