Dollar stores carry a range of cheap household products and random merchandise that fit even the tightest family budgets. While inflation has pressured the “everything costs $1 or less” niche, the concept of everyday staples at bargain prices endures nonetheless.
Let's explore the three big dollar store stocks so you can decide if one may fit nicely within your investment portfolio.
Top dollar store stocks in 2025
Top dollar store stocks in 2025
Industry consolidation has trimmed the dollar store space down to three main competitors: Dollar General (DG -1.34%), Dollar Tree (DLTR -1.0%), and Five Below (FIVE 0.75%). The table shows market capitalizations and descriptions for each of them.
| Stock | Market Cap | Description |
|---|---|---|
| Dollar General (NYSE:DG) | $15.75 billion | Dollar General is the largest dollar store chain by sales and number of locations. |
| Dollar Tree (NASDAQ:DLTR) | $15.3 billion | Dollar Tree, the second-largest dollar store company, nearly doubled its footprint in 2015 by acquiring Family Dollar. |
| Five Below (NASDAQ:FIVE) | $5.5 billion | Five Below is the newcomer in this space, having gone public in 2012. Five Below has far fewer stores and lower sales than its competitors, but its revenue growth has been solid. |
1. Dollar General
1. Dollar General
Dollar General (DG -1.34%) is the largest dollar store operator by annual sales and total store count.
The company also has the longest history of its competitors. Dollar General opened its first store in 1955, after founder Cal Turne was inspired by department store "dollar days" promotions. Thirteen years later, Dollar General went public on the New York Stock Exchange for $16.50 per share. Today, the company operates more than 20,000 stores around the U.S.
Financial performance
Dollar General has a long track record of revenue growth. In 2015, the company produced sales of about $18 billion. By fiscal year 2024, the annual sales had risen to $38 billion. The growth has come primarily from its expanding store footprint. During the same time, the chain added roughly 8,000 stores.
Between fiscal years 2014 and 2022, Dollar General held its operating margin between 8% and 10% -- solid performance for a retailer. More recent periods have been challenging. In fiscal year 2023, Dollar General's operating profit fell to 6.3%. Diluted earnings per share (EPS) also dipped from $10.68 in the prior year to $7.55. The company expects another EPS decline for fiscal year 2024, which ends in February 2025.
Dollar General's challenges include budget-constrained customers who are feeling the impact of inflation, inventory management issues, and weather events that have increased selling, general, and administrative (SG&A) expenses.
Stock price performance
Investors have not responded well to Dollar General's declining profitability. Between early 2023 and early 2025, the stock price fell from more than $230 to about $70.
2. Dollar Tree
2. Dollar Tree
Dollar Tree (DLTR -1.0%) is Dollar General's closest competitor by store footprint and annual sales. Dollar Tree acquired Family Dollar in 2015 and 170 stores from the 99 Cents Only chain in 2024. Today, Dollar Tree operates more than 16,000 stores and generates about $30 billion in revenue.
Financial performance
Like Dollar General, Dollar Tree has produced good sales growth over the long term. From a margin perspective, Dollar Tree has underperformed its competitor slightly. Between fiscal years 2016 and 2023, the company's operating margin ranged from 6.7% to 9%. Since then, Dollar Tree's margins and profitability have declined.
The 2023 adjusted diluted EPS was $5.89, down more than 18% from the previous year. Like Dollar General, Dollar Tree expects slightly lower EPS in 2024.
Dollar Tree also cites budget-constrained customers as a primary driver of lower profits. The company is addressing this in part by increasing its selection of high-frequency items -- everyday essentials -- priced below $5.
Stock price performance
Dollar Tree stock has fared better than Dollar General's, but the trend line is going in the wrong direction. In May 2023, you could buy a share of Dollar Tree for about $160. By January 2025, the stock was trading for about $70.
3. Five Below
3. Five Below
Five Below (FIVE 0.75%) opened its first store in 2002, which makes it a relative newcomer in the retail industry. The company targets young shoppers with an assortment of toys, party supplies, and other household basics -- many priced below $5.
Five Below trails its peers in store footprint and sales. The company has about 1,700 stores in the U.S., and generates about $3.5 billion in annual revenue.
Financial performance
Five Below has largely been a growth story since its 2012 initial public offering. Between fiscal years 2015 and 2019, the company delivered 20%-plus annual sales growth. By fiscal year 2024, the rate had leveled off somewhat to about 15%.
Five Below has the best operating margins of the three dollar stores, delivering more than 10% on this metric in most years. Profitability has been a little lumpy in recent years, with EPS declines in fiscal years 2021 and 2023.
Five Below's margins declined slightly in fiscal years 2023 and 2024, but not to the extent of its two competitors.
Also, while Dollar General and Dollar Tree have similar, value-oriented forward P/E ratios, Five Below trades at a higher price point relative to earnings. No doubt investors appreciate the store's relative margin performance and consistency.
Stock price performance
Five Below stock has also seen better days. In early-2023, the stock traded near $180. In early-2025, it's a shade above $100.
Contributing to the decline was a cut to the sales outlook in mid-2024 and the departure of the company's CEO and president.
Competition
Dollar store competition
Dollar General, Dollar Tree, and Five Below compete most directly with each other, but there is fierce indirect competition in the broader shopping space. Big box stores like Walmart (WMT 0.83%), club stores Costco (COST 0.47%) and Sam's Club, and closeout retailers such as Big Lots all cater to value-oriented consumers.
Related investing topics
A retail industry in flux
Dollar stores have struggled to deliver on their promise of extreme value to customers hard hit by high inflation. After several years of good growth and respectable margins, the dollar chains are adjusting to more conservative outlooks and deploying strategies to re-energize their product selection.
Investors have beaten down the stock prices as a result. This could create a buying opportunity for those who believe the dollar-store concept is a long-term winner.
