Backed by strong third-quarter net sales of $10.6 billion, Dollar General on Dec. 4 said it plans to open an additional 450 stores in the United States in 2026.
In addition to expanding its domestic footprint—Dollar General primarily operates in rural areas—the company also announced during its earnings call that it would add 10 stores in Mexico, as well as remodel about 4,500 stores.
“Our first priority is investing in the business, including our existing store base, as well as other high-return growth opportunities such as new store expansion, remodels, and other strategic initiatives,” Dollar General CFO Donny Lau said.
Dollar General’s year-over-year net sales for the quarter ended Oct. 30 were up by 4.6 percent but fell slightly short of forecasted sales of $10.62 billion. However, the company’s earnings per share of $1.28 significantly exceeded forecasted earnings of $0.94 per share, sending Dollar General’s shares surging on Dec. 5. The stock has trended upward by more than 77 percent year to date.
“We are pleased with our top-line results in the third quarter, which we believe demonstrate the important role we play in providing value to customers in our communities,” CEO Todd Vasos said. “We’re pleased to see growth once again in our total customer count, with this proportion of growth coming from higher-income households.”
Same-store sales were up 2.5 percent in the third quarter, driven by a similar increase in customer traffic, Vasos noted. Customers paid slightly more for items but typically bought fewer items, he added.
“This traffic and basket composition is consistent with what we have historically observed when our core customer feels more pressured on their spending, as they come in more often but have smaller basket sizes,” Vasos said.
Jay Woods, chief market strategist at Freedom Capital Markets, said that an increase in customer traffic and continued store expansion have helped Dollar General’s same-store sales rise.
He said high- and low-income shoppers alike are gravitating toward discount retailers such as Dollar General for lower prices.
“Discount retail continues to show strength, as high-end spenders are seeking bargains while low-end consumers seem less willing to pay premium prices and are gravitating toward discount chains for essentials.”
Dollar General offers more than 2,000 products at or below the $1 price threshold, and its rotating portfolio of 500 low-cost items led to same-store sales growth of 7.6 percent in products at that price point, the company said.
The company paid a dividend of $0.59 per common share, or approximately $130 million, during the quarter. For its fiscal year ending Jan. 30, 2026, the company revised its net sales growth projections upward to 4.7–4.9 percent, and a diluted earnings per share forecast of $6.30–6.50, topping previously announced earnings expectations of $5.80–6.30 per share.
Dollar General said it opened 196 new stores, including seven in Mexico, as well as remodeled 1,175 stores in the third quarter. The vast majority of its stores are within five miles of 75 percent of the U.S. population, Dollar General noted.
“Our real opportunity here is to continue to deliver to rural America,” Vasos said. “That’s our value proposition. We own rural America out there across the United States.”
Founded in 1939, Dollar General operates 20,901 Dollar General, DG Market, DGX, and pOpshelf locations in 48 states and employs more than 195,000 people.
