AI interpretation based on checked source excerpts. Issuer assertions and evidence limitations remain explicit.
Policy quality-scores-2: six equally weighted categories. The overall score requires full coverage. Missing inputs are not zero. Qualitative grades are sourced interpretations, not probabilities. 5/6 · 18/10/2026
Moat50
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
structural advantage · 2/4 · Focused purchasing volumes and a low-cost assortment provide a concrete advantage mechanism, complemented by store proximity. Long-term demand supports its relevance, but relative procurement costs and barriers to replication are not demonstrated.
durability · 3/4 · Positive annual same-store sales growth since 1990, except 2021, demonstrates unusually persistent demand across economic conditions. This supports durability of the value proposition, with less certainty about the relative cost lead; competition and rising expansion costs constrain the assessment.
customer dependency · 1/4 · Proximity and persistent demand support habitual convenience, but competitive prices and easy shopping offer fragile dependence. Intense competition and realized price reductions provide no evidence of meaningful customer lock-in.
erosion resilience · 2/4 · Shrink improvements and higher first-half net income demonstrate adaptation despite cost pressures. Lower operating cash flow, higher fuel and occupancy costs, and the pOpshelf impairment show material vulnerabilities. Generic risks are not treated as realized losses.
Pricing power50
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
realized pricing · 1/4 · A substantial portion of received tariff refunds funded promotions and lower everyday prices in 2026. These observed reductions support weak pricing power, although they were partly funded by cost relief rather than demonstrated forced discounting.
retention · 3/4 · The decades-long same-store sales record strongly supports persistent demand indirectly. It does not measure individual repeat customers, customer retention rates or willingness to remain after price increases.
margin resilience · 2/4 · Higher first-half net income and realized shrink improvement support mixed operating resilience while prices were reduced and fuel costs rose. A detailed margin bridge is absent, so earnings growth does not establish strong pricing-led margin protection.
contractual freedom · 2/4 · Disclosed routine pricing adjustments and implemented price reductions demonstrate practical discretion over retail prices. The passages do not establish comprehensive contractual freedom or the ability to raise prices without demand consequences.
Predictability100
Five consecutive annual periods. Equal weights: nondeclining revenue frequency; revenue-growth volatility (5–40pp); positive FCF frequency; FCF-margin volatility (3–20pp). Stability indicator, not a growth forecast.
- Nondeclining revenue years (%)
- 100.00
- Revenue growth volatility (pp)
- 3.03
- Positive FCF years (%)
- 100.00
- FCF margin volatility (pp)
- 1.81
Financial strength72
Equal-weight grades: debt/FCF (1–8x), net debt/earnings before interest and tax (0–5x), interest service (1–12x), current ratio (0.75–2x). Earnings use reported operating income, or reported pretax profit plus reported interest expense when operating income is unavailable. Interest service uses earnings/interest expense; if unavailable, it uses reported operating cash flow/cash interest paid, without relabeling cash paid as accrued expense. Nonpositive cash flow/earnings score 0 for their service component; reported zero interest with a positive numerator scores 100. Net cash scores 100 for net leverage. Missing disclosures remain unavailable. General nonfinancial-company rubric, not a credit rating; exceptional and nonoperating gains are not normalized out. IFRS finance-cost and cash-flow classifications retain their reported scope.
- debtFcfGrade
- 86.95
- netDebtEbitGrade
- 68.76
- interestCoverageGrade
- 100.00
- currentRatioGrade
- 30.76
- Debt / FCF (x)
- 1.91
- Net debt / operating income (x)
- 1.56
- Current ratio (x)
- 1.13
- cashInterestPaid
- 290.42
- cashInterestCoverage
- 12.51
Capital allocation—
Missing required inputs: operatingReturn. Three-year equal-weight indicators: pretax return on average invested capital (0–25%; equity + debt − cash, each year and its prior year), share-count growth (0–5%, lower better), share-based cost/revenue (2–20%, lower better), consolidated FCF/net income (0–1x). Return uses reported operating income or, if unavailable, EBIT calculated from reported pretax profit plus reported interest expense; exceptional/nonoperating gains are not normalized out. Share-based cost uses the reported cash-flow add-back or, if absent, separately reported recognized compensation expense; the latter never becomes an FCF adjustment. Nonpositive net income scores 0 for cash conversion; absent income/FCF stays unavailable. Nonpositive invested capital has no defined return and remains unavailable. Does not establish acquisition quality or buyback timing.
- 3-year average dilution (%)
- -0.75
- 3-year average SBC / revenue (%)
- 0.16
- cashConversionGrade
- 100.00
Management63
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
capital discipline · 2/4 · First-half operating cash flow of approximately $1.50 billion covered $758 million of property purchases and $260 million of dividends, with cash increasing. Actual investment favored existing stores and logistics. Lower operating cash flow, substantial new lease commitments, the pOpshelf impairment and missed three-year ROIC incentive threshold make the overall record mixed.
incentive alignment · 3/4 · Actual 2025 incentives combined operating results, sales, a remodeling objective and equity, including three-year ROIC awards. Failure to meet the earlier ROIC threshold resulted in no earning of that PSU portion, demonstrating performance consequences. The CEO had a holding requirement but received no 2025 long-term awards. Full outright ownership and realized long-term alignment are not established.
execution · 2/4 · Completed store projects, improved shrink and higher first-half net income provide actual, partly indirect execution evidence. Elevated damages, reduced operating cash flow, the pOpshelf impairment and missed three-year ROIC target prevent a strong overall grade.
governance · 3/4 · Actual independent committee membership, advance related-party review, annual director elections and equal voting rights support strong formal governance. Management reported effective disclosure controls. Derivative litigation raises unresolved allegations, not established misconduct; these disclosures do not prove exceptional oversight effectiveness.
Evidence
We are able to maintain competitive prices due in part to our low-cost operating approach and the relatively limited assortment of products offered.
Business / low-cost operating approach and limited assortment · Filed 20/03/2026
Purchasing large volumes of merchandise within our focused assortment in each merchandise category allows us to keep our average product costs low, contributing to our ability to offer competitive everyday prices to our customers.
Business / purchasing volumes and product costs · Filed 20/03/2026
We believe that we differentiate ourselves from other forms of retailing by offering competitive prices in a convenient, small-store format, and by operating our stores in close proximity to our customers, with approximately 75% of the U.S.
Business / small-store convenience and proximity · Filed 20/03/2026
population located within five miles of a Dollar General store.
Business / population within five miles of a store · Filed 20/03/2026
We have achieved positive same-store sales growth each year since 1990, with the exception of 2021 which followed unusually high sales results in 2020 during the height of the COVID pandemic.
Business / historical annual same-store sales growth · Filed 20/03/2026
Competition is intense and we believe it will continue to be so, with certain competitors reducing their store locations while others move into or increase their presence in our geographic and product markets and increase the availability of mobile, web-based and other digital technology to facilitate a more convenient and competitive online and in-store customer shopping experience.
Business / competition and digital convenience · Filed 20/03/2026
We received the majority of the expected refunds during the quarter and reinvested a substantial portion of the refunds in our customer value proposition through targeted promotional activities and lower everyday prices.
MD&A / tariff refunds reinvested in promotions and lower prices · Filed 27/08/2026
Both inflation and higher interest rates have significantly increased new store opening costs and occupancy costs in recent years and, while new store returns remain strong, these increased costs have negatively impacted our projected new store returns and influenced our new store growth plans.
MD&A / opening costs, occupancy costs and projected store returns · Filed 27/08/2026
Furthermore, we incurred significantly higher fuel costs in the second quarter of 2026, and we expect this trend to continue for an uncertain duration.
MD&A / realized second-quarter fuel cost increases · Filed 27/08/2026
For example, in the fourth quarter of 2024, we recorded a significant impairment expense, the majority of which relates to pOpshelf stores.
Risk factors / fourth-quarter 2024 impairment, primarily pOpshelf · Filed 20/03/2026
Inventory shrink has significantly improved from elevated levels in recent years, and although damages remain elevated, we made progress reducing damages in the second quarter of 2026.
MD&A / realized shrink and damage improvements · Filed 27/08/2026
9 DOLLAR GENERAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In thousands) For the 26 weeks ended July 31, August 1, 2026 2025 Cash flows from operating activities: Net income $ 994,442 $ 803,354 Adjustments to reconcile net income to net cash from operating activities: Depreciation and amortization 548,310 509,609 Deferred income taxes 82,037 24,035 Noncash share-based compensation 61,213 52,977 Other noncash (gains) and losses 29,922 88,387 Change in operating assets and liabilities: Merchandise inventories (248,951) 44,667 Prepaid expenses and other current assets (169,447) (25,727) Accounts payable 275,501 111,177 Accrued expenses and other liabilities 74,696 167,312 Income taxes (140,944) 46,560 Other (10,074) (7,496) Net cash provided by (used in) operating activities 1,496,705 1,814,855 Cash flows from investing activities: Purchases of property and equipment (758,450) (693,918) Proceeds from sales of property and equipment 4,168 2,424 Net cash provided by (used in) investing activities (754,282) (691,494) Cash flows from financing activities: Repayments of long-term obligations (11,937) (509,629) Costs associated with issuance of debt — (487) Payments of cash dividends (260,307) (259,718) Other equity and related transactions (19,090) (1,536) Net cash provided by (used in) financing activities (291,334) (771,370) Net increase (decrease) in cash and cash equivalents 451,089 351,991 Cash and cash equivalents, beginning of period 1,138,501 932,576 Cash and cash equivalents, end of period $ 1,589,590 $ 1,284,567 Supplemental noncash investing and financing activities: Right of use assets obtained in exchange for new operating lease liabilities $ 845,860 $ 859,724 Purchases of property and equipment awaiting processing for payment, included in Accounts payable $ 146,552 $ 117,281 See notes to consolidated financial statements.
Consolidated cash flow statement / first-half 2026 and 2025 results · Filed 27/08/2026
We continually evaluate the needs and demands of our customers and modify our merchandise selections and pricing accordingly, while remaining focused on increasing profitability, cash generation and returns for our shareholders.
Business model / merchandise and pricing adjustments · Filed 20/03/2026
Significant components of property and equipment purchases included the following approximate amounts: 26 Weeks Ended July 31, August 1, (amounts in millions, except store count amounts) 2026 2025 Existing stores improvements, upgrades, remodels, and relocations $ 414.5 $ 365.4 Distribution and transportation-related capital expenditures 168.2 151.1 New stores primarily for leasehold improvements, fixtures and equipment 132.7 142.8 Information systems upgrades and technology-related projects 31.1 32.2 Other 12.0 2.4 Total purchases of property and equipment $ 758.5 $ 693.9 Store Counts New stores 321 360 Remodeled or relocated (a) 2,757 2,586 (a) Remodeled store counts include 1,324 stores through Project Renovate and 1,422 stores through Project Elevate.
MD&A / actual capital expenditure allocation and store projects · Filed 27/08/2026
We achieved adjusted ROIC of 18.38%, or 85.1% of the adjusted ROIC three-year target related to the portion of PSUs granted in 2023 subject to 2023-2025 adjusted ROIC performance, which was below the level required to earn such PSUs (see “Long-Term Equity Incentive Program”).
Executive compensation / three-year adjusted ROIC result and unearned PSUs · Filed 07/04/2026
Pay Element Vehicle Key Details Base Salary Cash Reflects comparable positions in the competitive marketplace, recognizing performance, responsibilities and experience Short-Term Incentive “Teamshare” Cash Adjusted EBIT (70%) Net Sales (20%) Strategic Objective (Project Elevate) (10%) Long-Term Incentive* RSUs (50%) 3-Year Ratable Vesting PSUs (50%) Performance Metrics / Vesting Periods: 1-Year Adjusted EBITDA (50%) / 3-Year Ratable Vesting 3-Year Average Adjusted ROIC (50%) / 3-Year Cliff Vesting * Mr.
Proxy summary / actual 2025 incentive structure · Filed 07/04/2026
Vasos must hold any shares he acquires upon exercise of any portion of the 2023 Rehire Options until at least October 12, 2027 (except shares withheld to pay any exercise price or to satisfy tax withholding obligations or shares acquired after his death, disability termination or qualifying termination in connection with a change in control).
Executive compensation / CEO option-share holding requirement · Filed 07/04/2026
There is no person currently serving or who served in 2025 on the Audit Committee, the CHCM Committee, the NGCR Committee or the Technology Committee that does or did not meet, as applicable, the NYSE independence requirements for membership on those committees, as applicable; our additional standards; and, as to the Audit Committee, SEC rules.
Director independence / actual committee independence · Filed 07/04/2026
The policy requires that a designated Board committee review in advance and oversee related party transactions for potential conflicts of interest and prohibit transactions it determines to be inconsistent with the interests of Dollar General and our shareholders.
Related-party transactions / advance review and conflict restrictions · Filed 07/04/2026
• Annual Board Elections with a Majority Voting Standard: All of our directors are elected annually by our shareholders.
Shareholder rights / annual director elections · Filed 07/04/2026
• Equal Voting Rights for All Shareholders and No Supermajority Voting Provisions: We have equal voting rights for all shareholders, and our Charter and Bylaws do not contain provisions requiring more than a simple or absolute majority vote for any issue.
Shareholder rights / equal voting and no supermajority provisions · Filed 07/04/2026
The claims in the State Court Shareholder Derivative Litigation include allegations that certain of the Company’s current and former officers and directors (i) violated their fiduciary duties by misrepresenting the impact of alleged store labor, inventory pricing and other practices on the Company’s financial results, prospects, and reputation, as well as creating a risk of adverse regulatory action; (ii) were unjustly enriched; and (iii) that Mr.
Commitments and contingencies / shareholder derivative litigation allegations · Filed 27/08/2026
Based on this evaluation, our principal executive officer and our principal financial officer concluded that our disclosure controls and procedures were effective as of the end of the period covered by this report.
Controls and procedures / management's effectiveness conclusion · Filed 27/08/2026
Vasos was not granted long-term incentive awards for 2025.
Proxy summary / CEO exception to 2025 long-term incentive grants · Filed 07/04/2026
