GO Investor Alert: Grocery Outlet Holding Corp. Securities Fraud Lawsuit - Investors With Losses May Seek to Lead the Class Action After Allegedly Overstating Growth Sustainability Projections: Levi & Korsinsky

Promise vs. Reality: The Grocery Outlet Performance Gap

NEW YORK, April 22, 2026 /PRNewswire/ -- Grocery Outlet promised investors accelerating growth fueled by rapid store expansion and a completed restructuring plan. The reality: missed guidance on every major metric, 36 store closures, $110 million in impairment charges, and a 27.9% stock collapse.

Find out if you can recover your Grocery Outlet losses or contact Joseph E. Levi, Esq. at [email protected] or (212) 363-7500.

Grocery Outlet Holding Corp. (NASDAQ: GO) shares fell $2.45 per share to close at $6.34 on March 5, 2026, after the Company revealed it had "expanded too quickly" and would close 36 financially underperforming stores. The lead plaintiff deadline is May 15, 2026.

The Promise

Throughout the Class Period from August 5, 2025 through March 4, 2026, Grocery Outlet projected confidence to shareholders. In August 2025, the Company reaffirmed full-year guidance calling for net sales of $4.7 billion to $4.8 billion, comparable store sales growth of 1.0% to 2.0%, adjusted EBITDA of $260 million to $270 million, and diluted adjusted earnings per share of $0.75 to $0.80. The Company touted its Restructuring Plan as "substantially completed" and continued opening new stores at a rapid pace, with 22 stores added in the first half of fiscal 2025 alone.

By November 2025, the Company narrowed guidance but still projected net sales of $4.70 billion to $4.72 billion, comparable store sales growth of 0.6% to 0.9%, adjusted EBITDA of $258 million to $262 million, and diluted adjusted earnings per share of $0.78 to $0.80.

The Reality

On March 4, 2026, the Company disclosed full-year results that missed its own guidance on virtually every metric:

• Net sales: Promised $4.70 billion (low end) — Actual $4.69 billion
• Comparable store sales: Promised 0.6% to 0.9% — Actual 0.5%
• Adjusted EBITDA: Promised $258 million (low end) — Actual $254.3 million
• Diluted adjusted EPS: Promised $0.78 (low end) — Actual $0.76
• Store closures: Promised continued expansion — Actual closure of 36 underperforming locations
• Impairment charges: Not disclosed during the Class Period — $110 million recognized in Q4 2025

What the Lawsuit Alleges About the Gap

The lawsuit contends that while the Company was publicly reaffirming guidance and celebrating new store openings, it was concealing that its growth was being artificially supported by excessive, rapid store expansion that could not produce sustainable profitability. The CEO's own admission on March 4, 2026 that the Company "expanded too quickly" and that the closures were "a direct correction" underscores the gap between what investors were told and what was actually occurring, according to the complaint.

"Companies that make specific promises to investors about future performance have an obligation to disclose known risks to those projections. When the gap between projections and results is this consistent across every metric, it raises serious questions about what was known and when." — Joseph E. Levi, Esq.

Speak with an attorney about recovering your GO investment losses or call (212) 363-7500.

LEAD PLAINTIFF DEADLINE: May 15, 2026

Levi & Korsinsky, LLP is a nationally recognized shareholder rights firm. Over the past 20 years, the firm has secured hundreds of millions of dollars for aggrieved shareholders. Ranked in ISS Top 50 for seven consecutive years.

CONTACT:

Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
[email protected]
Tel: (212) 363-7500
Fax: (212) 363-7171

SOURCE Levi & Korsinsky, LLP