Deadline Approaching for Grocery Outlet Securities Class Action: Investors Urged to Act

Important Reminder for Grocery Outlet Shareholders

Faruqi & Faruqi, LLP, a prominent national securities law firm, is raising awareness among investors of Grocery Outlet Holding Corp. (NASDAQ: GO) regarding a significant deadline relating to a federal securities class action lawsuit. Investors who suffered losses while purchasing or acquiring securities from Grocery Outlet between August 5, 2025, and March 4, 2026, are encouraged to take action ahead of the deadline of May 15, 2026.

The focus of the investigation stems from allegations that Grocery Outlet and its executives made misleading statements concerning the company’s financial health and growth potential. Reports indicate that the firm expanded too rapidly into new store ventures without sustainable support, leading to disappointing financial results and a corrective restructuring plan that involved substantial store closures.

On March 4, 2026, just after the trading day closed, Grocery Outlet disclosed its fourth quarter and full-year financial results, which fell short of expectations across the board. These included a reported adjusted EBITDA of $254.3 million, against guidance of $258 million, and net sales of $4.69 billion, not meeting the anticipated low-end figure of $4.70 billion. Furthermore, comparable store sales growth was only 0.5%, which did not align with the prior guidance of 0.6% to 0.9%. The disappointing results prompted the company to announce the closure of 36 underperforming stores as part of a new optimization initiative.

As a result of this announcement, Grocery Outlet’s stock experienced a sharp decline, dropping by $2.45, or 27.9%, closing at $6.34 per share. This dramatic downturn in share price illustrates the impact of the company's previous misrepresentations regarding its operational success and strategic growth plans.

The specifics of the investigation highlight several critical aspects:
1. Rapid Expansion Issues: The complaint suggests the company expanded its store locations too hastily, undermining sustainable growth.
2. False Financial Statements: There are claims that executives provided inaccurate assessments of the financial and operational performance, which misled investors about the firm's viability.
3. Restructuring Plan Consequences: Following the announcement of disappointing financial results, the company revealed plans for an optimization strategy, which included significant write-downs of assets and expected restructuring charges between $14 million and $25 million for fiscal 2026.

During the earnings call held in conjunction with the financial results announcement, Grocery Outlet's CEO, Defendant Potter, admitted to the miscalculated decisions regarding store expansions. He acknowledged the necessity for closures as a direct response to the evident failures in growth strategies.

With the May 15 deadline approaching, it is imperative for affected investors to consider their legal options. The court will appoint a lead plaintiff who will represent the interests of the investors involved in the class. Individuals can also pursue this opportunity through their chosen counsel, though participation decisions may vary among investors.

Furthermore, Faruqi & Faruqi encourages anyone who previously worked with Grocery Outlet, including whistleblowers, to come forward with information that may assist in this case. Investors may contact the firm directly for any inquiries related to participation in this class action suit.

For more details or to discuss options, potential lead plaintiffs are urged to contact Faruqi & Faruqi partner Josh Wilson at (877) 247-4292 or (212) 983-9330 (Ext. 1310). Additional information can also be found at www.faruqilaw.com/GO.

In summary, this investigation underscores significant missteps by Grocery Outlet management and serves as a reminder of the due diligence required from investors in verifying the claims made by the companies in which they invest. The coming weeks are critical for those who wish to assert their rights as investors in the ongoing legal matters concerning Grocery Outlet.