** Shares of discount supermarket chain Grocery Outlet GO.O fall 26.2% to $6.49 premarket

** Co, after market close on Wednesday, forecast annual net sales between $4.60 billion and $4.72 billion, below estimates of $4.81 billion - data compiled by LSEG

** GO expects 2026 adjusted EPS between 45 cents and 55 cents, below estimates of 69 cents

** Consumer pressure intensified, federally funded benefits were delayed and competition grew more promotional in the fourth quarter, CEO Jason Potter said

** Jefferies downgrades stock to "hold" from "buy"; says prior optimism around cleaner reset and faster execution recovery has faded, given heavier reliance on promotions to prop up volumes at expense of margins and profit growth

** Telsey Advisory Group also downgrades stock to "market-perform" from "outperform"

** Average rating of 14 brokerages is "hold"; median PT is $10 - data compiled by LSEG

** GO down 35.3% in 2025

(Reporting by Neil J Kanatt in Bengaluru)

((Neil.JKanatt@thomsonreuters.com;))