CrosbyVenture

Grocery Outlet: Weak Quarter, Long-term Play

Long
NASDAQ:GO   Grocery Outlet Holding Corp
While revenue fell below expectations, Grocery Outlet's earnings skyrocketed ahead of expectations. the company still trades at 1.2x sales and looks to be a medium conviction play.

When considering the consolidation in the grocery space in general, as well as FCF for reinvestment, it's worth thinking about the buyout potential for a mid-tier regional looking to expand their footprint. I think of a comparable, Costco ( NASDAQ:COST ) performance has done insanely well this year.

Pierce Crosby
GM, Americas @ TradingView