Dollar General announced that it plans to open roughly 450 new stores in the United States next year. The plan comes after the company beat earnings expectations and saw its stock surge this year.
The company reported strong third-quarter results, with net sales reaching $10.6 billion. That marked an increase of about 5 percent compared to the same period last year.
Dollar General also said it squeezed more profit out of each dollar in sales, helping push its earnings per share to $1.28. Analysts had expected only $0.94.
The better-than-expected results pushed the company’s stock sharply higher. Shares are up more than 77 percent so far this year.
CEO Todd Vasos said the company is encouraged by rising customer traffic. “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,” 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.”
Dollar General opened 196 new stores in the last quarter and remodeled more than 1,100. Another eight stores were relocated. Over the full fiscal year, the company expects thousands of remodels through programs such as Project Renovate and Project Elevate.
Next year’s expansion will focus largely on rural communities. Vasos said the new stores will feature larger layouts with more cooler space and an expanded selection of health and beauty products. Dollar General also plans to open 10 additional stores in Mexico and renovate about 4,500 U.S. locations.
Despite the aggressive growth plan, the company recently closed nearly 100 stores following a review of underperforming locations. It offered no indication of widespread closures going forward.
Dollar General operates nearly 21,000 stores across the United States. Most Americans live within five miles of one of its locations. The chain says its value-focused model remains a major draw. More than 2,000 items are priced at $1 or below. Same-store sales for those low-priced products grew 7.6 percent in the last quarter.
Vasos said the company’s long-term strategy is rooted in serving rural America. He remarked that Dollar General “owns rural America,” where customers depend on lower prices for everyday essentials.
A separate report from the University of Michigan last week showed consumer sentiment improving as inflation worries ease slightly.
Expectations for year-ahead inflation dropped to 4.1 percent, the lowest level since January when President Trump returned to the White House and began imposing sweeping tariffs. Inflation remains above the Federal Reserve’s target but has fallen from its 2022 highs.
Dollar General says its 2026 real estate plan reflects confidence in continued demand for discount shopping and its ability to reach more communities in the year ahead.