Dollar General opening 800 stores in 2024

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FIVE DOLLA, MAKE YOU HOLLA

Plans to open 800 new stores in 2024, down from 990 openings in 2023 (Read Here)

DG Earnings: Dollar General Exceeds Expectations with Q3 Results

• Solid Performance: Dollar General reports better-than-expected earnings and revenue in Q3, driven by strong consumer demand.

• Store Expansion: Despite a slight slowdown, Dollar General plans to open 800 new stores in fiscal 2024, focusing on rural areas.

• Sales Trends: While same-store sales declined, positive customer traffic and market share gains show promising underlying sales trends.

• Inventory Management: Dollar General reduces merchandise inventories by 1.8% on a per-store basis compared to the previous year.

• Store Expansion Plans: Despite a slight slowdown, Dollar General plans to remodel 2,000 stores, and relocate 120 stores.

• Conclusion: With solid performance, expansion plans, and focus on improvement opportunities, Dollar General remains confident in its value and convenience model amidst economic cycles.

🧠 EDITOR’S THOUGHTS

Dollar General net leased cheat sheet:

• Investment Grade Credit: BBB | Baa2

• Rent: $90,000 - $110,000 Average

• Lease Type: NNN (older leases NN)

• Rent Increases in Base Term: None (only in option periods)

• Low Price Point: $1.5MM - $2MM Average

• Cap Rate: 5.25% - 6.75% Average

• Base Term: 10-15 Years plus Options

• Lot Size Requirement: 1 Acre Average

• Building Size: 8,000 - 12,000 SF Average

TRIPLE NET TENDIES

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NET LEASE NUGGIES

• Zaxby’s expands presence in the Midwest with three new locations. Zaxby’s, the fast-food chain, announced its plans to open three new restaurants in Indiana and Kentucky. With these new locations, Zaxby’s now has over 930 establishments, continuing its growth trajectory. Franchise owner Manish Malhotra took advantage of Zaxby’s incentive program to facilitate the openings. The program includes discounts on royalties, a refund of the license fee, and a ramp-up in marketing efforts. Zaxby’s officials are excited about the expansion and look forward to seeing Malhotra's success with the brand. (Read More)

• Domino's unveils "Hungry for More" strategy to revive sales Domino's Pizza plans to focus on food, operations, value, and franchisees as part of its recovery strategy. The pizza chain aims to achieve annual global retail sales growth of 7% from 2024 to 2028, with $7 billion in incremental sales. Domino's will also enhance its food offerings through marketing, menu innovation, and improved back-of-house processes using technology. The brand will prioritize value for customers, including lower spending thresholds for its loyalty program. Franchisees will benefit from increased operating income and a focus on franchise development. (Read More)

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