Grocery Outlet Holding Corp. · NASDAQ:GO
Grocery Outlet — Q3 2025 Earnings Presentation
32 slides from Grocery Outlet's earnings presentation, November 2025
Slide 1: Grocery Outlet Business Overview
Grocery Outlet Business Overview November 2025
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements This presentation includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this presentation other than statements of historical fact, including statements regarding the Company’s
Slide 3: Company Overview
COMPANY OVERVIEW GROCERYOUTLET argain market’
Slide 4: Grocery Outlet Is a Differentiated, High-Growth, Off-Price Retailer
Grocery Outlet Is a Differentiated, High-Growth, Off-Price Retailer STRONG FINANCIAL DIFFERENTIATED MODEL ATTRACTIVE STORE BASE PERFORMANCE 40%-70% 563 $4.57bn Prices Below Conventional Retailers On Our Best Net Sales (2) Grocery Outlet Stores Deals (1) 75 5.1% 5,000+ 63 17 Average Comparable Store
Slide 5: The WOW! Shopping Experience
The WOW! Shopping Experience PRICE QUALITY SERVICE • Extreme value • Name-brand products • Primarily locally owned and operated - ~40% average basket savings (1) • Fresh • Friendly, high-touch service - ~40% - 70% savings on best deals (1) • Natural Organic Specialty Healthy (NOSH) • Active in commu
Slide 6: Solid Growth and Consistent Margin Performance
Solid Growth and Consistent Margin Performance Comp Store Sales Average: 5.1% Strong Comp Performance Total Stores Store Growth (1) Gross Margin % Strong and Consistent Annual Gross Margins Consistent Margins Adjusted EBITDA ($M) (2) Track Record of Adjusted EBITDA(2) Growth 6 (1) Includes UGO Acqui
Slide 7: Comparable Store Sales Growth Performance in 2008-2009
While Each Recession is Unique, Grocery Outlet Had Strong Comparable Store Sales Growth Performance in 2008-2009 Recessionary Conditions (2008-2009) 2-year stack Comparable Store Sales Growth of selected public retailers (1) 27% (15%) (9%) (6%) (5%) (3%) (2%) 3% 4% 7% 8% 19% 7 Source: Company filing
Slide 8: Grocery Outlet Evolution: Over 75 Years of Delivering the WOW!
Grocery Outlet Evolution: Over 75 Years of Delivering the WOW! NOSH: Natural, Organic, Specialty, or Healthy TLF: Touching Lives Foundation IFH: Independence from Hunger 8 GHG: Greenhouse gas
Slide 9: Our ESG Strategy
Our ESG Strategy OVER $5 MILLION RAISED The equivalent of about 10 million meals benefiting over 500 local organizations in 2025. 9
Slide 10: Investment Highlights & Growth Strategies
INVESTMENT HIGHLIGHTS & GROWTH STRATEGIES
Slide 11: Investment Highlights & Growth Strategies
Investment Highlights & Growth Strategies Investment Highlights Growth Strategies Be the First Choice for Bargain-Minded Powerful customer value proposition supported by a “WOW!” experience Customers Across the Country Flexible sourcing and distribution model that is Strengthen our core business mod
Slide 12: Key Strategic Initiatives
Key Strategic Initiatives TACKLING NEW STORE SECURING ADDRESSING EXECUTING PERFORMANCE TOP TALENT EXECUTION GAPS AT SCALE Increasing Focus on Core Markets Matt Delly Completing Systems Upgrade Rolling Out New Layouts, Chief Merchandising Officer Signage and Storytelling Improving More than 20 years
Slide 13: Our Fundamentally Different Approach To Buying and Selling
Our Fundamentally Different Approach To Buying and Selling HOW WE BUY HOW WE SELL • Opportunistic sourcing of quality, name- • Primarily independently operated, local, brand consumables and fresh products small-box stores • Personalized customer service • Large, centralized purchasing team • High co
Slide 14: Flexible Sourcing and Distribution Model Anchored by Purchasing Team and Relationships
Flexible Sourcing and Distribution Model Anchored by Purchasing Team and Relationships Long-Standing Suppliers… …Who Make Us One of Their First Calls RELATIONSHIP BRAND PROTECTION …And New Emerging Suppliers EXECUTION SCALE 14
Slide 15: Substantial Opportunity to Further Grow Opportunistic Supply
Substantial Opportunity to Further Grow Opportunistic Supply Significant Share Gain Opportunity Ongoing Secondary Market Growth Secondary Market 15
Slide 16: Differentiated Sourcing Model Delivers Great Value To Customers
Grocery Outlet’s Differentiated Sourcing Model Delivers Great Value To Customers Two Primary Methods Opportunistic Everyday Core Staples • Opportunistic purchases • When staples, such as milk represent CPG excess or sugar, cannot be sourced inventory opportunistically, GO buys from traditional suppl
Slide 17: Favorable Value Proposition vs. Other Retailers
Favorable Value Proposition vs. Other Retailers Basket Savings Further Differentiation % Savings Across Store Relative to Competitors(1) BUT WITH NO MEMBERSHIP FEE CLUB STORES OR BULK SIZES! ~40% DEEP BUT OFFERS LEADING DISCOUNTERS NATIONAL BRANDS! Conventional ~20% Grocery Discount DOLLAR ACROSS A
Slide 18: Unique Independent Operator Model Fuels Success
Unique Independent Operator Model Fuels Success “Out Chain the Locals, Out Local the Chains” GROCERY OUTLET INDEPENDENT OPERATORS Operational Grocery Outlet Benefits Operational • Sourcing • Aligned economic interests • Merchandising • Initial pricing • Managing inventory • Reduced fixed costs • Rec
Slide 19: Compelling Store Economics For Both Grocery Outlet & Independent Operators
Compelling Store Economics For Both Grocery Outlet & Independent Operators GO IO IO Model Reduces GO’s Fixed Cost Burden Illustrative Expense Split CapEx Buildout Fixed Costs Inventory/Pre-Opening Fixed Costs IO Commission IO Assets/Working Capital IO model reduces Illustrative Year-4 P&L fixed cost
Slide 20: Selective Independent Operator Recruiting And Rigorous Training
Selective Independent Operator Recruiting And Rigorous Training Annual Leads: ~50,000 First Contact: Phone Screen & Initial Review Considered: Rigorous Interview Process Selected: 70+ Enter 6-9 Month Aspiring Operator in Training Program 20
Slide 21: Centralized Marketing Coupled With Local IO Marketing Efforts
Centralized Marketing Coupled With Local IO Marketing Efforts ENTERPRISE MARKETING DRIVEN BY GROCERY OUTLET LOCAL MARKETING DRIVEN BY OPERATORS SOCIAL MEDIA WEEKLY ADS WOW! ALERTS IN-STORE LOCALIZATION RADIO/CONNECTED TV INFLUENCER PERSONALIZATION TARGETED PROMOTIONS ACTIVE SOCIAL DISPLAY ADS RADIO
Slide 22: Financial Performance & Outlook
FINANCIAL PERFORMANCE & OUTLOOK
Slide 23: Historical Financial Performance
Historical Financial Performance Strong and Disciplined Net Sales Growth Track Record of Adjusted EBITDA(1) Growth 1 = Adjusted EBITDA Margin (1) Dollars in millions. Note: Fiscal 2020 was a 53-week year. The extra week contributed $53.3 million in sales in fiscal 2020. 23 (1) See the Appendix to th
Slide 24: Long History of Comparable Store Sales Performance Across Cycles
Long History of Comparable Store Sales Performance Across Cycles Recessionary Economic 2004 – Q3 2025 Average: ~5.1% Conditions Q1 2020 – Q3 2025 Quarterly Comparable Store Sales Results Q1’2020 – Q3’2025 Average: ~ 5.1% 24
Slide 25: Q3 2025 Highlights & Fiscal 2025 Outlook
Q3 2025 Highlights & Fiscal 2025 Outlook Q3 Highlights Thirteen Weeks Ended Y-o-Y Change • Opened 13 new stores with two store closures, ending the quarter September 27, 2025 with 563 stores in 16 states • Comp store sales increased 1.2% on top of 1.2% last year Stores 563 6.4% • Adjusted EBITDA(1)
Slide 26: Healthy Balance Sheet with Strong Liquidity
Healthy Balance Sheet with Strong Liquidity • Reduced net leverage (1) from 5.8x pre-IPO (2) to 1.8x as of Net Leverage (1) Q3’2025. • $175M remaining borrowing capacity under revolving credit facility at end of Q3’2025. Capitalization ($ in millions) (2) (3) Interest Coverage (6) (4) (5) (4), (5) (
Slide 27: Appendix
APPENDIX GROCERYOUTLET argain market’
Slide 28: Quarterly Adjusted EBITDA Reconciliation
Quarterly Adjusted EBITDA Reconciliation Note: Dollars in millions. Amounts may not sum to totals due to rounding. (1) Includes non-cash share-based compensation expense and cash dividends paid on vested share-based awards as a result of dividends declared in connection with recapitalizations that o
Slide 29: Quarterly Adjusted Net Income Reconciliation
Quarterly Adjusted Net Income Reconciliation Note: Dollars in millions. Amounts may not sum to totals due to rounding. (1) Includes non-cash share-based compensation expense and cash dividends paid on vested share-based awards as a result of dividends declared in connection with recapitalizations th
Slide 30: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation Note: Dollars in millions. Amounts may not sum to totals due to rounding. (1) Includes non-cash share-based compensation expense and cash dividends paid on vested share-based awards as a result of dividends declared in connection with recapitalizations that occurred in
Slide 31: Adjusted Net Income Reconciliation
Adjusted Net Income Reconciliation Note: Dollars in millions. Amounts may not sum to totals due to rounding. (1) Includes non-cash share-based compensation expense and cash dividends paid on vested share-based awards as a result of dividends declared in connection with recapitalizations that occurre
Slide 32: Net Debt and Net Leverage Reconciliation
Net Debt and Net Leverage Reconciliation Note: Dollars in millions. Amounts may not sum to totals due to rounding. (1) Defined as long-term debt, net of unamortized debt discounts and debt issuance costs. (2) Defined as Total Debt, less cash & cash equivalents. (3) Defined as Net Debt / Adjusted EBI
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