Largest dollar store chain in the U.S. by sales and store count generating $2.8 billion of EBITDA in 2019. Countercyclical business that is less exposed to online disruption. Consistent free cash flow generation exceeding $1.4 billion per year. Moderate financial policy with commitment to current investment-grade rating and leverage target of around 3x. Stiff competition from Dollar Tree, Walmart, and other discount retailers expected to accelerate in recessionary environment. Spending power of core, lower-income customer is limited and vulnerable to higher unemployment and living expenses. Risk of the discount subsector becoming overstored despite other closings in overall retail sector. We believe Dollar General can successfully weather challenges from COVID-19 and a weaker macroeconomic environment compared with both big box and
