Whole Foods Market, Inc. (NASDAQ:WFM)

CAPS Rating: 4 out of 5

Whole Foods brings the world of natural and organic foods into the supermarket format.


Player Avatar Cicciano (34.19) Submitted: 2/17/2013 4:39:08 AM : Underperform Start Price: $43.81 WFM Score: +45.97

This stock is priced to perfection. The company is great, but it is a grocery store chain. The underlying business and upcoming growth rate simply does not command this valuation. At best it will be lucky to move sideways in th next four years, but brace yourself for a steady PE and PFCF contraction.

Member Avatar pauleckler (61.54) Submitted: 2/17/2013 12:44:23 PM
Recs: 0

Whole Foods has learned to grow at a measured pace because new stores require several
years to attract the loyal customers they need to be profitable. In St. Louis they have two stores
and are now negotiating to build a third one near Washington Univ, St. Louis Univ, and the Barnes
Hospital complex. Assuming people are willing to drive 10 miles to shop for their quality products,
I think they need three additional stores to cover the St. Louis area. At the rate of 3-5 yrs per store
I think they will continue to grow for 10 to 15 more years.

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