Investor Bails on Grocery Outlet After $10.9M Vanishes

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So there’s this investor, right? Stadium Capital Management. They woke up one morning and decided to press the nuclear button on their Grocery Outlet shares. Poof. $10.9 million in smoke. Meanwhile, I’m over here trying to remember if I ever actually saw a Grocery Outlet store that didn’t smell vaguely of expired coupons.

Let me explain how we got here. On November 14, Stadium Capital filed a document with the SEC that basically said, “We’re out.” They sold every last one of their 877,860 shares. That’s like throwing a party and then leaving before the cake’s even cut. Or maybe they just finally read the fine print on Grocery Outlet’s business plan: “We sell expired soup and hope nobody notices.”

Here’s the kicker-this wasn’t some minor bet. Ten percent of their portfolio? Gone. Poof. They’re now doubling down on companies like NYSE:BLDR and NASDAQ:SNBR, which I assume are code names for “whatever the algorithm told us to buy.”

If you’ve ever shopped at Grocery Outlet, you know the vibe. It’s the retail equivalent of a thrift store Santa-trying desperately to look jolly while clearly drowning in existential despair. Their shares have dropped 48% in a year. The S&P 500? Up 14%. So while the rest of the market’s out here roasting marshmallows, Grocery Outlet’s investors are staring into a fire they can’t even light.

Metric Value
Revenue (TTM) $4.6 billion
Net Income (TTM) ($4.4 million)
Market Cap $1.1 billion
Price (as of Friday) $11.13

Their business model? Buying surplus goods nobody wants and reselling them to people who think “closeout” means “a steal.” It’s genius, really-until it’s not. Last quarter, sales inched up 5.4%, but profits? Down 50%. Adjusted EBITDA? Slipping like a soggy cereal box.

Management’s got this “refresh program” they’re touting. Sounds like one of those corporate yoga retreats where everyone comes back more stressed. They claim early pilots are “encouraging,” but let’s be real-execution risks are the financial equivalent of playing Operation with a twitchy hand.

Here’s my favorite part: the glossary. Terms like “Flexible sourcing strategy” and “Differentiated position” read like a corporate resume padded with buzzwords. My personal favorite? “Surplus and closeout goods.” Translation: stuff nobody else wanted.

So what’s the takeaway? If you’re Stadium Capital, it’s “adios.” If you’re still holding shares, maybe start drafting that LinkedIn post about “learning from failure.” And if you’re me? You’re just out here wondering how many more quarterly reports it’ll take before Grocery Outlet’s stock chart looks like a deflated balloon animal. 📉

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2025-12-01 01:22