Dollar General stock jumps. Many shoppers are “stretched out”

Shares of Dollar General led the S&P 500’s gains after its latest quarterly results showed that Americans continue to search for value, benefiting the discount retailer and its competitors.

The company’s shares recently rose by about 13%. The retailer said Thursday it generated $10.65 billion in revenue in the third quarter as same-store sales rose 2.5%. Both numbers were roughly in line with analysts’ expectations. Earnings per share easily beat estimates at $1.28, compared to the $0.93 that analysts expected, according to Visible Alpha.

CEO Todd Vassos said during a conference call Thursday that the company has seen “disproportionate growth” in business from higher-income households, according to a transcript provided by AlphaSense. Low- and middle-income consumers “continue to stretch out” and are looking for value in both the products and merchants they choose, he said.

Dollar General (DG) raised its forecasts for sales growth, earnings per share, and same-store sales growth for the full year. The company confirmed its plans to open about 575 new stores in the United States this year and 450 stores next year, and is looking to redesign or renovate thousands more locations.

On Wednesday morning, rival Dollar Tree ( DLTR ) beat estimates and said it continues to see market share growth among higher-income consumers. After the closing bell on Wednesday, discount retailer Five Below (FIVE) also beat expectations, with comparable sales jumping 14% year over year.

With Thursday’s move, Dollar General shares are up more than 60% since the beginning of the year and at their highest point since August 2024.