Dollar General (NYSE:DG) Announces Quarterly Earnings Results

Dollar General (NYSE:DG) released its quarterly earnings results on Thursday. The company reported $1.93 EPS for the quarter, topping analysts’ consensus estimates of $1.57 by $0.36, FiscalAI reports. The company had revenue of $10.91 billion for the quarter, compared to the consensus estimate of $10.78 billion. Dollar General had a net margin of 3.03% and a return on equity of 18.59%. Dollar General’s revenue was up 5.9% on a year-over-year basis. During the same period in the previous year, the firm earned $0.87 EPS. Dollar General updated its FY 2026 guidance to 7.100-7.35 EPS.

Here are the key takeaways from Dollar General’s conference call:

• Strong Q4 and FY 2025 results: Q4 net sales rose 5.9% to $10.9B with same-store sales +4.3%, EPS up 122% to $0.93 and management said results were “well ahead” of expectations, supported by three consecutive quarters of traffic growth.
• Meaningful margin improvement driven by shrink and inventory actions: Gross margin expanded ~105 bps in Q4 (107 bps for the year) due largely to a ~80 bps reduction in shrink and lower inventory; management expects ~50 bps more from shrink/damages and at least 120 bps total gross margin improvement from initiatives over the next 3–4 years.
• Clear growth strategy and digital acceleration: Dollar General outlined four strategic pillars (customer experience, brand, efficiencies, extend reach), plans ~450 new U.S. stores in 2026 (581 opened in 2025), large remodel programs, a push to grow non-consumables (targeting up to 20% penetration by 2029), expanding delivery (~18,000 stores) and a $170M DG Media Network.
• 2026 guidance and near-term headwinds: Outlook calls for net sales growth of 3.7–4.2%, comps 2.2–2.7% and EPS $7.10–7.35, but management expects modest SG&A deleveraging, a higher ~25% tax rate (including a ~150 bp headwind from expiration of the Work Opportunity Tax Credit, ~$0.13 EPS), and Q1 disruption from winter storms.
• Strong cash generation and disciplined capital allocation: Operating cash flow was $3.6B (+21%), the company redeemed $1.7B of senior notes and kept the quarterly dividend at $0.59, but management does not assume share repurchases in 2026 (repurchases expected to resume when appropriate, model contemplates restart in 2027).

Dollar General Stock Down 0.7%

NYSE:DG traded down $0.91 during trading hours on Friday, hitting $135.04. 599,126 shares of the stock traded hands, compared to its average volume of 3,128,965. The firm has a 50 day moving average price of $147.80 and a 200 day moving average price of $123.48. The firm has a market cap of $29.72 billion, a price-to-earnings ratio of 23.24, a PEG ratio of 2.39 and a beta of 0.23. Dollar General has a fifty-two week low of $77.52 and a fifty-two week high of $158.23. The company has a current ratio of 1.17, a quick ratio of 0.24 and a debt-to-equity ratio of 0.63.

Dollar General Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, April 21st. Shareholders of record on Tuesday, April 7th will be paid a dividend of $0.59 per share. This represents a $2.36 annualized dividend and a yield of 1.7%. The ex-dividend date of this dividend is Tuesday, April 7th. Dollar General’s payout ratio is 40.76%.

Dollar General News Roundup

Here are the key news stories impacting Dollar General this week:

• Positive Sentiment: Q4 beat on top and bottom lines — stronger traffic, comp sales and margin expansion drove a clear earnings beat that validates the company’s turnaround actions. DG Q4 Earnings Transcript
• Positive Sentiment: Operational momentum — management highlighted margin improvement, store rationalization/remodels and cost controls that should support higher profitability going forward. Earnings Call Highlights: Margin Momentum
• Positive Sentiment: Digital and engagement gains — accelerating app adoption (reported ~7M users) and initiatives like DG Wellness/pOpshelf support longer-term traffic and basket growth. Dollar General Logs 7 Million App Users
• Neutral Sentiment: Capital-return stance — DG declared a quarterly dividend ($0.59) and is retaining buyback flexibility while it finishes inventory rationalization; supports income investors but is not growth-accretive short term. Press Release: FY2025 Results & Dividend
• Neutral Sentiment: Analysts remain cautious/neutral — several firms kept Hold ratings or trimmed targets, signaling upside is not yet fully priced despite the beat. Analyst: Hold Ratings
• Negative Sentiment: Guidance disappointment — management projected slower comparable/annual sales growth for fiscal 2026 (management cited muted comps and cautious outlook), which overshadowed the quarterly beat and pressured the stock. Reuters: Forecasts Below Estimates
• Negative Sentiment: Market reaction & macro/competitive risks — investors punished the stock after the mixed message (beat + weak outlook); analysts flagged slower profit growth and rising competitive pressure from Walmart/online channels. Fool: Why Stock Isn’t Taking Off

Analyst Upgrades and Downgrades

Several brokerages recently commented on DG. Barclays reissued an “overweight” rating on shares of Dollar General in a report on Thursday. Piper Sandler lifted their price target on Dollar General from $129.00 to $132.00 and gave the company a “neutral” rating in a research report on Friday, March 6th. Deutsche Bank Aktiengesellschaft raised Dollar General from a “hold” rating to a “buy” rating and set a $170.00 price objective on the stock in a research note on Thursday, January 8th. Wells Fargo & Company raised their target price on Dollar General from $115.00 to $125.00 and gave the company an “equal weight” rating in a research note on Friday, December 19th. Finally, Argus lifted their target price on Dollar General from $135.00 to $152.00 and gave the stock a “buy” rating in a report on Thursday, December 18th. Fourteen equities research analysts have rated the stock with a Buy rating, fifteen have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus target price of $145.85.

Insider Activity

In other Dollar General news, EVP Rhonda Taylor sold 7,500 shares of the firm’s stock in a transaction dated Tuesday, December 16th. The stock was sold at an average price of $134.89, for a total transaction of $1,011,675.00. Following the completion of the sale, the executive vice president directly owned 73,492 shares in the company, valued at approximately $9,913,335.88. This trade represents a 9.26% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, EVP Bryan D. Wheeler sold 9,776 shares of Dollar General stock in a transaction dated Friday, December 19th. The shares were sold at an average price of $135.32, for a total value of $1,322,888.32. Following the transaction, the executive vice president directly owned 22,295 shares in the company, valued at approximately $3,016,959.40. This trade represents a 30.48% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 19,558 shares of company stock worth $2,638,868. 0.56% of the stock is owned by corporate insiders.

Institutional Trading of Dollar General

Institutional investors have recently made changes to their positions in the stock. Sivia Capital Partners LLC purchased a new stake in shares of Dollar General during the second quarter worth $211,000. Zions Bancorporation National Association UT grew its stake in Dollar General by 18.2% in the fourth quarter. Zions Bancorporation National Association UT now owns 1,445 shares of the company’s stock valued at $192,000 after purchasing an additional 223 shares in the last quarter. Virtus Advisers LLC increased its position in Dollar General by 45.9% in the 4th quarter. Virtus Advisers LLC now owns 1,240 shares of the company’s stock worth $165,000 after purchasing an additional 390 shares during the last quarter. Atlas Capital Advisors Inc. acquired a new position in Dollar General in the 4th quarter worth about $160,000. Finally, Smartleaf Asset Management LLC raised its stake in shares of Dollar General by 219.2% during the 4th quarter. Smartleaf Asset Management LLC now owns 1,047 shares of the company’s stock worth $142,000 after purchasing an additional 719 shares in the last quarter. 91.77% of the stock is currently owned by institutional investors and hedge funds.

About Dollar General

Dollar General Corporation is a U.S.-based variety and discount retailer operating a large network of small-format stores that serve primarily rural and suburban communities. The company is publicly traded on the New York Stock Exchange under the ticker DG and is headquartered in the Nashville/Goodlettsville, Tennessee area. Founded in 1939, Dollar General has grown from a regional operation into one of the nation’s prominent low-price retailers focused on convenience and value.

Dollar General’s stores offer a wide assortment of everyday consumables and household goods, including food and beverage items, cleaning supplies, health and beauty products, paper goods, apparel basics, seasonal merchandise and small household items.