Key Points

  • Dollar General announced Wednesday that it has named finance veteran Donny Lau, a former company executive, as its chief financial officer, effective Oct. 20.
  • Lau, who most recently served as CFO of restaurant chain Zaxby's, returns to Dollar General nearly three years after leaving. He will succeed Kelly Dilts, who is departing Aug. 28 to become Nordstrom's finance chief. Dollar General CEO Todd Vasos will serve as the company's principal financial officer during the transition.
  • "Donny's deep understanding of our business, culture, and values, combined with his exceptional financial leadership and experience, uniquely positions him to drive performance and create long-term shareholder value," Vasos said in a press release.

Dive Insight

Lau, 46, joined Zaxby's as CFO in 2023. Before that, he held various leadership roles at Dollar General, including chief strategy officer. He also worked at Yum! Brands, where he served as head of financial planning and analysis, among other positions.

Lau will receive an annual base salary of $800,000 in his new role, according to a securities filing.

In a client note Thursday, analysts at Telsey Advisory Group said they expect Lau to adapt quickly and succeed in the role, given his prior tenure at Dollar General and his "deep understanding of the culture, strategy, and finance organization."

Dollar General announced the appointment ahead of its second-quarter earnings release on Aug. 28.

The discount retailer is expected to report earnings per share of $1.56, down 8.2% year over year, while revenue is projected at $10.67 billion, up 4.5% from the same period last year, according to Zacks Equity Research.

In the first quarter, the company reported net sales growth of 5.3% year over year to $10.4 billion, and net income rose nearly 8% to $392 million.

Lau takes over Dollar General's top finance role as the company works to keep prices low amid tariff pressures. In late June, the retailer announced price cuts on more than 1,000 items through Labor Day, spanning food, health and wellness, home cleaning, and personal care, sister publication Retail Dive reported.

During an earnings call in June, Vasos said the company is "working hard" to mitigate the impact of tariffs on its business, including partnering with suppliers to reduce costs.

"While the tariff landscape remains fluid and uncertain, and we expect tariffs could ultimately result in some price increases, we will do our best to minimize the impact," Vasos said.