+ Watch RNDY
on My Watchlist
I service 3 Roundy's stores as a rep for a major snack food company and have for many years. How they make any money is beyond me. Growth is very hard to come by, and their prices just keep rising. There are many better options out there.
Profitable,Dividend, Low PE, Below Book Value.
Buildout of Mariano's stores in Chicago is a gamechanger for this chain.
Sure the dividend might get cut, but if they pay out about 40% like peers SWY and KR, it will still yield 8%.
Ok, so the ticker is my name, but dividends look good right now.
Their debt level is crushing. Either refinance, sell shares, or file for bankruptcy. Management needs to consider opening up more Miranos stores to increase growth acceleration, and consider closing down unprofitable rainbow or other stores to begin transforming the company.
I'm new at the CAPS game. RNDY is a small stock, not public for long. Recent guidance has knocked the stock back to $10, and the company plans to begin paying .23 dividend next quarter, which they believe is "well covered", giving a yield of 9.2%. Same store sales were negative a couple of percent, with total sales up a couple of percent. Opening 4 new stores in 2012. Guidance for 2012 was backed off, resulting in the beat down. Management is well respected, and has tenure. I don't know about beating the S&P over time, but I like the dividend, provided it can be sustained, and if RNDY can manage to grow a bit over time, it could turn out to be a nice addition. A small position for me, I normally follow the Fools SA & RB & II picks, and pay attention to the boards. Looking forward to sharing thoughts on RDNY with other Fools.
Roundy's has found something special with there recent Mariano's Fresh Market concept. The company has just been taken public via IPO after years of being held by a private equity company Willis-Stein. Based on the explanations I have read at a couple of website, Willis-Stein still holds a large stake in the company that it may or may not drop on the market in the near future. This would cause downward pressure on the stock, but in the long term they will be good to be ride of them. This is a growth story hinging on the two "new concept" stores Mariano's and Metro Market. Mariano's is the Chicago brand while, Metro Market is the Milwaukee brand. Both offer a refreshing mix of high end products you would find at a Whole Foods (Craft Beer, Great Deli, Great produce) while still offering the standard off the shelf brands like Kraft, Campbells, and Tombstone. They are also very competitive on price as compared to Jewel and Dominicks. The only thing I can say that is negative is that while there is a tremendous upside in the "new brands" the "old brands" based in Wisconsin and Minnesota will probably not grow very much over time. There are currently only 5 Mariano and 3 Metro Markets open while the old brands have 93 Pick ’n Save stores, 32 Rainbow stores, 26 Copps stores (151 Total). They will also be paying a .23$/per share per quarter dividend. This is good and bad. The good is we will receive some immediate cash back. The bad is that for a company that has a hit concept they should be puting all there cash back into new store locations, and not distributing it to shareholders. In my mind that is poor corporate financial strategy but maybe they will get the message.Overall: Great Concept, Decent Price (Forward P/E 7.75) and limited downside risk (Dividend Yield will be 8%).
Way too much debt. I have no idea how they plan to pay that off when it comes due. Hopefully they'll be able to refinance again when that time comes, but that's not a great answer to this huge problem.
Service, selection, deeper penetration into the Chicago market
Just a bad company. I can't believe anyone bought the stock.
Grocery stores rock
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