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Stadium Capital Dumps Grocery Outlet Stock
1 Dec, 2025
Summary
- Stadium Capital Management sold all its shares.
- The exit resulted in an estimated $10.9 million change.
- Grocery Outlet shares are down 48% over the past year.
Stadium Capital Management announced a complete divestiture from Grocery Outlet Holding Corp. during the third quarter, offloading its entire stake of 877,860 shares. This strategic exit, valued at approximately $10.9 million, represents a substantial change for the fund, which previously held the position as 10% of its assets under management.
The decision comes amid Grocery Outlet's turbulent stock performance, with shares down 48% over the last year, significantly trailing the S&P 500's gains. The company's latest financial report revealed a notable decrease in net income, falling by over half to $11.6 million, despite a modest 5.4% rise in net sales to $1.2 billion.
While Grocery Outlet is implementing a refresh program to revitalize growth, potential investors face uncertainty due to execution risks associated with its restructuring plan, softer comparable-store sales, and elevated operating expenses. The long-term outlook remains contingent on the success of these operational improvements.
