Grocery Outlet narrows FY25 adjusted EPS view to 78c-80c from 75c-80c

Consensus 79c. Narrows FY25 revenue view to $4.7B-$4.72B from $4.7B-$4.8B, consensus $4.72B. Cuts FY25 adjusted EBITDA view to $258M-$262M from $260M-$270M. Cuts FY25 comparable store sales view to up 0.6%-0.9% from up 1%-2%. The company said, “As previously reported, the Company initiated a restructuring plan during the fourth quarter of fiscal 2024, with continued implementation in fiscal 2025, intended to improve long-term profitability, cash flow generation and return on invested capital, optimize the footprint of new store growth and lower the Company’s cost base. The Restructuring Plan included the termination of a total of 28 leases for unopened stores in suboptimal locations and the discontinued development of certain future store sites where we had incurred initial costs, but leases had not yet been signed, the cancellation of certain capital-intensive warehouse projects and a reduction in headcount in building a more scalable cost structure. As of September 27, 2025, the Company incurred total costs under the Restructuring Plan of $62 million, of which $38 million were cash expenditures. All costs incurred during the third quarter and first three quarters of fiscal 2025 are included in Restructuring charges on the condensed consolidated statements of operations and comprehensive income. The actions under the Restructuring Plan were substantially completed in the second quarter of fiscal 2025.”