Wrapping up Q4 earnings, we look at the numbers and key takeaways for the non-discretionary retail stocks, including Sprouts (NASDAQ: SFM) and its peers.

Food is non-discretionary because it's essential for life (maybe not those Oreos?), so consumers naturally need a place to buy it. Selling food is a notoriously tough business, however, as the costs of procuring and transporting oftentimes perishable products and operating stores fit to sell those products can be high. Competition is also fierce because the alternatives are numerous. While online competition threatens all of retail, grocery is one of the least penetrated because of the nature of the product. Still, we could be one startup or innovation away from a paradigm shift.

The 9 non-discretionary retail stocks we track reported a mixed Q4. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 0.9% below.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

Sprouts (NASDAQ: SFM)

Playing on the secular trend of healthier living, Sprouts Farmers Market (NASDAQ: SFM) is a grocery store chain emphasizing natural and organic products.

Sprouts reported revenues of $2.15 billion, up 7.6% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with an impressive beat of analysts’ EBITDA estimates but full-year EPS guidance missing analysts’ expectations significantly.

“Sprouts delivered strong growth in 2025," said Jack Sinclair, chief executive officer of Sprouts Farmers Market.

Interestingly, the stock is up 15.3% since reporting and currently trades at $78.23.

Is now the time to buy Sprouts? Access our full analysis of the earnings results here, it’s free.

Best Q4: Dollar General (NYSE: DG)

Appealing to the budget-conscious consumer, Dollar General (NYSE: DG) is a discount retailer that sells a wide range of household essentials, groceries, apparel/beauty products, and seasonal merchandise.

Dollar General reported revenues of $10.91 billion, up 5.9% year on year, outperforming analysts’ expectations by 0.9%. The business had a very strong quarter with an impressive beat of analysts’ EBITDA and EPS estimates.

Dollar General delivered the biggest analyst estimates beat among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 17.2% since reporting. It currently trades at $119.95.

Is now the time to buy Dollar General? Access our full analysis of the earnings results here, it’s free.

Weakest Q4: Grocery Outlet (NASDAQ: GO)

Due to its differentiated procurement and buying approach, Grocery Outlet (NASDAQ: GO) is a discount grocery store chain that offers substantial discounts on name-brand products.

Grocery Outlet reported revenues of $1.22 billion, up 10.7% year on year, falling short of analysts’ expectations by 0.6%. It was a softer quarter as it posted full-year revenue guidance missing analysts’ expectations significantly and full-year EBITDA guidance missing analysts’ expectations significantly.

As expected, the stock is down 18.4% since the results and currently trades at $7.17.

Read our full analysis of Grocery Outlet’s results here.

Costco (NASDAQ: COST)

Designed to be a one-stop shop for the suburban consumer, Costco (NASDAQ: COST) is a membership-only retail chain that sells groceries, apparel, toys, and household items, often in bulk quantities.

Costco reported revenues of $69.6 billion, up 9.2% year on year. This result topped analysts’ expectations by 0.8%. Aside from that, it was a mixed quarter as it also recorded a solid beat of analysts’ gross margin estimates but a slight miss of analysts’ EBITDA estimates.

The stock is up 3.2% since reporting and currently trades at $1,014.

Read our full, actionable report on Costco here, it’s free.

Dollar Tree (NASDAQ: DLTR)

A treasure hunt because there’s no guarantee of consistent product selection, Dollar Tree (NASDAQ: DLTR) is a discount retailer that sells general merchandise and select packaged food at extremely low prices.

Dollar Tree reported revenues of $5.45 billion, up 9% year on year. This print met analysts’ expectations. Zooming out, it was a slower quarter as it produced a significant miss of analysts’ EBITDA estimates and EPS guidance for next quarter missing analysts’ expectations.

Dollar Tree had the weakest full-year guidance update among its peers. The stock is flat since reporting and currently trades at $108.19.

Read our full, actionable report on Dollar Tree here, it’s free.

Market Update

Late in 2025 into early 2026, there was hand wringing around artificial intelligence. For software companies, the fear was that AI would erode pricing power and compress margins as new tools made it easier to replicate what once required expensive enterprise platforms. Crypto investors had their own version of the same anxiety: if AI agents could trade, allocate capital, and manage wallets autonomously, what exactly was the long-term value of today’s crypto infrastructure?

These concerns triggered a noticeable rotation away from these sectors and into safer havens. But markets rarely dwell on one narrative for long. Spring 2026 came, and the focus shifted abruptly from technological disruption to geopolitical risk. The US’ conflict with Iran became the dominant driver of market psychology, and when geopolitics takes center stage, the script changes quickly. Investors stop debating growth rates and start worrying about oil supply, inflation, and global stability.

Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.