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.