Dollar General recently announced a new partnership with DoorDash to introduce SNAP/EBT payment capabilities, significantly increasing online payment acceptance at its stores and potentially improving access for underserved communities. This collaboration likely played a role in the 10% increase in Dollar General's share price over the past month. Meanwhile, the broader market environment presented mixed signals, with major indices like the Dow Jones and S&P 500 experiencing declines amidst economic uncertainties and potential recession concerns. Despite a challenging market backdrop, Dollar General's latest client announcement and contiguous strategic steps, including corporate guidance updates and a continued focus on expanding product offerings, such as a new kitchen collection, possibly positioned the company favorably among investors. These internal developments may have bolstered investor confidence, countering broader market trends marked by tech sector volatility, as exemplified by declines in Tesla and Nvidia stocks during the same period.

Explore historical data to track Dollar General's performance over time in our past results report.

Uncover the next big thing with financially sound penny stocks that balance risk and reward.

Over the past five years, Dollar General's total shareholder return, including dividends, suffered a 39.15% decline. This performance contrasts sharply with the broader market's dynamics, emphasizing various factors impacting its trajectory. Significant issues included declining profit margins over the past year—dropping to 2.8% from 4.3%—which contributed to this longer-term downturn. Notably, Dollar General's earnings saw a downturn, with a 9.3% yearly decline over five years, further highlighting the challenges faced by the company.

Additionally, Dollar General underperformed both the US market and the Consumer Retailing industry over a one-year horizon, with the broader market advancing by 10% and the industry rising by 22.3%. Despite offering dividends of US$0.59 per share, ongoing corporate actions like substantial stock buyback programs which ceased recently didn't suffice to counterbalance these broader market and industry trends. These elements underscore the complexity of Dollar General's market environment and its impact on shareholder returns.

Invested in Dollar General? Simplify your portfolio management with Simply Wall St and stay ahead with our alerts for any critical updates on your stocks.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include NYSE:DG.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com