Dollar General (DG) or Dollar Tree (DLTR): Which Stock Is Better?

Dollar Tree, Inc. (NASDAQ:DLTR) and Dollar General Corporation (NYSE:DG) both reported quarterly results above sales expectations as lower-priced essentials continued to drive consumers to their stores amid economic uncertainty. Both retailers also benefited from tariff refunds, which helped support their higher full-year profit targets.

Dollar General Corporation (NYSE:DG) saw a 3.5% year-over-year increase in quarterly same-store sales, supported by growth across categories like seasonal, home products, and apparel. The company lifted its fiscal 2026 same-store sales growth forecast from its earlier range of 2.2% to 2.7% to 2.5% to 2.9%.

Dollar General Corporation (NYSE:DG) now expects fiscal 2026 earnings per share of about $7.80 to $8.00. This includes a benefit of about 25 cents from tariff refunds after related reinvestments. Dollar Tree, Inc. (NASDAQ:DLTR) also raised its full-year earnings forecast to $7.70 to $8.05 per share, which includes a benefit of about 60 cents from tariff refunds.

It is not difficult to argue that the latest results point to improving momentum at both discount retailers. Dollar General Corporation (NYSE:DG) delivered its seventh consecutive earnings beat, with earnings per share coming in 11% above analysts' expectations. Even after excluding the 25-cent net benefit from tariff refunds, the company's earnings were up approximately 20% year-over-year.

Dollar General Corporation (NYSE:DG) experienced growth across all four of its product categories, with non-consumables performing better than consumables. Traffic increased 2% during the quarter, while the company also reported continued improvement in shrink and damages despite increasingly difficult comparisons. The company raised the midpoint of all its key fiscal 2026 guidance metrics. Additionally, Dollar General Corporation (NYSE:DG) also now plans share repurchases of up to $700 million under its existing authorization, compared with previous fiscal 2026 guidance that assumed no share repurchases

Following the results, Raymond James raised its price target on Dollar General Corporation (NYSE:DG) to $150 from $145 while maintaining an Outperform rating. Bernstein SocGen Group also maintained its Outperform rating and $160 price target on the stock.

Dollar Tree, Inc. (NASDAQ:DLTR) also showed signs of improving performance as comparable sales and traffic improved on both a one-year and two-year basis, with traffic turning modestly positive in the quarter. Raymond James raised its price target on the stock to $145 from $140 while keeping its Outperform rating. The firm said Dollar Tree, Inc.'s (NASDAQ:DLTR) Q2 results supported its view that the company's underlying earnings trajectory is improving.