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Dollar General Corporation (DG)

  • Thu, Mar. 12, 9:47 AM
    • Shares of Dollar Tree (DLTR +1.6%), Target (TGT +1.1%), Wal-Mart (WMT +1.1%), Fred's (FRED +1.1%), and Five Below (FIVE +1.6%) are picking up steam after Dollar General's (DG +2.7%) quarterly reports shows some broad strength across categories.
    • Despite the headline miss on U.S. retail sales earlier, the S&P Retail (NYSEARCA:XRT) is up 1.12% to outpace the S&P 500.
    • Analysts think lower-income consumer spending is gaining momentum based on the most recent reads from discounters such as Dollar General.
    • Previously: New buybacks and store growth on tap for Dollar General
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  • Thu, Mar. 12, 7:25 AM
    • Dollar General (NYSE:DG) reports same-store sales rose 4.9% in Q4.
    • Categories cited as strong during the quarter included candy/snacks, tobacco, perishables, and health care.
    • Gross profit rate -20 bps to 31.7%.
    • Operating profit -50 bps to 11.47%.
    • The West Coast port slowdown was a $0.02 drag on earnings.
    • Guidance: Total sales growth of +8% to +9% forecast. The company expects EPS growth of 10% to 13% in 2015. Store openings will be accelerated to a level where square footage growth of 7% expected.
    • Buybacks: The board approved another $1B in share repurchases to bring the total buyback allowance to over $1.2B.
    • DG -1.8% premarket.
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  • Thu, Jan. 22, 9:38 AM
    • Shareholders with Family Dollar (NYSE:FDO) have approved the merger offer from Dollar Tree (DLTR +1.8%) as expected.
    • 74% of shareholders approved the merger of the discounters.
    • FDO trades at $76.20 vs. the buyout price of $74.50.
    • Shares of Dollar General (NYSE:DG) are taking the news well, up 2.4% in early trading.
  • Nov. 19, 2014, 5:13 AM
    • Dollar General (NYSE:DG) may have to divest more than 4,000 stores, more than double the 1,500 stores it said it was willing to sell, if it wants to gain regulatory approval to buy Family Dollar (NYSE:FDO), reports The New York Post.
    • Getting the FTC to change its mind could take months, but rival Dollar Tree (NASDAQ:DLTR) wants a vote on its proposed Family Dollar merger by Dec. 31.
    • Without the time to explain its case to the FTC, Dollar General could be forced to either raise its bid or live with the added number of divestitures.
    • DG -1.8% premarket
    | 1 Comment
  • Sep. 5, 2014, 8:55 AM
    • Citing antitrust concerns, the Family Dollar (NYSE:FDO) board rejects Dollar General's (NYSE:DG) latest bid, which came at a 7.4% premium to Dollar Tree's (NASDAQ:DLTR) buyout price.
    • "There is a very real and material risk that the transaction proposed by Dollar General would fail to close, after a lengthy and disruptive review process," says Family Dollar boss Howard Levine.
    • Family Dollar and Dollar Tree amend their merger agreement, with Dollar Tree committing to divest as many stores as necessary to receive antitrust clearance. The two also accelerate their expectations for closing the deal to as early as the end of November.
    • FDO -0.8%, DG -1.4%, DLTR -1.4% premarket
  • Sep. 2, 2014, 9:07 AM
    • Family Dollar (NYSE:FDO) indicates it will review the updated offer from Dollar General (NYSE:DG) with advisers before it will offer a recommendation to shareholders.
    • The Dollar General bid commands a 7.4% premium over what discounter peer Dollar Tree (NASDAQ:DLTR) offered up and includes a commitment to shed up to 1.5K stores.
    • Retail analysts think the ample competition in the supercenter/superstore/supermarket space will keep regulators largely at bay as they evaluate the potential combination of the two dollar store chains.
    • FDO +0.8% to $80.45, a shade above the $80 bid price from Dollar General, in an indication that some investors are betting yet another offer could come down the road.
    | 1 Comment
  • Sep. 2, 2014, 6:48 AM
    • Dollar General (NYSE:DG) raises its offer price to acquire Family Dollar to $80 a share to top a prior bid of $78.50 per share.
    • The company also agrees to shed as many as 1.5K stores if necessary in order to make the merger fly with the FTC.
    • A $500M reverse break-up fee relating to antitrust issues is also on the table.
    • DG-FDO merger timeline
    • Premarket: DG +1.7%, FDO +0.8%.
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  • Aug. 21, 2014, 8:14 AM
    • Shares of Family Dollar (NYSE:FDO) are lower in early trading after the company confirms reports that is has rejected a $78.50-per-share offer from Dollar General.
    • The company says it has antitrust concerns about the combination.
    • The board has reaffirmed that it supports the company merging with Dollar Tree (NASDAQ:DLTR).
    • Premarket: Dollar Tree -1.8%, Family Dollar -0.5%, Dollar General (NYSE:DG) -1.1%.
    | 1 Comment
  • Aug. 18, 2014, 9:11 AM
    | 1 Comment
  • Aug. 18, 2014, 8:34 AM
    • Dollar General (NYSE:DG) is a clear favorite in the race for Family Dollar (NYSE:FDO), according to retail analysts.
    • The company forecasts annual run-rate synergies almost twice the amount Dollar Tree (NASDAQ:DLTR) forecast on top of the extra $4 per share it's willing to pony up.
    • FDO +4.85% to $79.75.
  • Aug. 18, 2014, 7:06 AM
    • A combination of Dollar General (NYSE:DG) and Family Dollar (NYSE:FDO) would create a discounting giant with close to 20K stores and sales of over $28B per year.
    • The retailers estimate the merger would create synergies of $550M-$600M annually three years after the deal closes.
    • It's also estimated that the new company would return to investment grade approximately three years after closing.
    • Premarket: DG +10.4% to $63.45, Dollar Tree (NASDAQ:DLTR) -1.4% to $54.85, FDO still to open.
    | 1 Comment
  • Aug. 5, 2014, 12:18 PM
    • Dollar General (DG +3.4%) is in the mix now to make a play for Family Dollar (NYSE:FDO), according to a breaking Bloomberg report.
    • Sources indicate the company is talking to bankers about how to best finance an offer.
    • Family Dollar has traded above Dollar Tree's (DLTR -1.7%) $74.50-per-share offer since the purchase agreement was announced, and after today's development, is up another 2.6% to $77.68.
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  • Jun. 27, 2014, 12:47 PM
  • Jun. 27, 2014, 10:18 AM
    • Dollar General (DG -6%) CEO Rick Dreiling, 60, plans to retire either on May 30, 2015, or upon the appointment of a successor. An "internal and external search" has been launched to find Dreiling's replacement.
    • Dreiling has been DG's CEO since Jan. '08. His retirement plans come as Carl Icahn pushes for rival Family Dollar (FDO -3.1%) to pursue a merger, possibly with DG.
    • Investors seem to be betting the uncertainty surrounding DG's CEO transition lowers the near-term odds of a deal.
  • Jun. 9, 2014, 9:13 AM
    | 1 Comment
  • Jun. 9, 2014, 6:57 AM
    • Jefferies upgrades Dollar General (DG) and Family Dollar (FDO) to a Buy rating.
    • The investment firm thinks that merger talks between Dollar General and Family Dollar  will advance due to the pressure applied by 9.4%-stakeholder Carl Icahn.
    • Premarket: DG +6.1%, FDO +9.5%.
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Company Description
Dollar General Corp is a discount retailer in the United States, which offers a selection of merchandise, including consumables, seasonal, home products and apparel.