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Whole Foods brings the world of natural and organic foods into the supermarket format.
- Collaboration with Apple pay- Comps grew 5%- Store count grew 371 to 417 - New concept for Millennials However, same store sales have slowed. Personal calculation of intrinsic value around $87.98.
WfmHas grown dramatically without incurring significant debt. Has nearly $1b in cash, and can self-fund the rollout of the new 365 sites. These sites will focus on customers who are most driven to the wfm brand, (urban, millennials, upscale empty nesters) and improves competitive pricing posture by creating the new outlets with smaller footprint and lower overhead costs. With a stated continues focus on quality, there is potential that the 365 shops will help grow the entire brand over time. This is an aggressive response to increased competition for organic products. The current p/e puts a 25-30% burden of eps growth to support the current share price, while expert projections are more along the lines of 12%, so careful monitoring of the new rollout strategy is required.
Whole Foods is going through some difficult times there is still a huge potential to grow and with a nation who is moving to a healthier style of eating and willingness to pay a premium for good food I think Whole Foods is poised to be the leader in this grocery space for a while to come. This is a speculative pick but I am comfortable with it.
Good solid business with strong brand. Stock price recently hit due to an unfavorable earnings report and a long term strategy of "mini stores" which investors did not like.
With the trend and popularity of eating healthy, buying locals, and organic non-gmo foods, whole foods remains the top store to go to. They have great customer services and employees. I believe in this store to do well in its market.
Too much of a sell off. Getting in at a decent price.
It's out pricing itself and boxing itself in and trying to expand, consequently it's growing pains are magnified by overall operating expenses and profit margins. And it's going to take a while before it's a new concept of stores tailored for different economic neighborhood markets will see a light at the end of the tunnel.
Management will figure out how to deal in a more competitive environment for organic food - on the negative side margins may go down which may negatively impact valuation in the near term. Overall store number increase and operational efficiency will win out in the end. This pick is not for the short term trader.
This will be the last year you can buy Whole Foods under $50. With the over reaction today down to $41.50, I am a buyer. They posted solid earnings and sales, albeit SSS were not up to par at 3% (expected 5%). The roll out of smaller stores, catering to the masses will prove to be a game changer. Currently, WF is handcuffed with the smallest segment of the population - the 2%. The high majority of its future customers can't afford the traditional WF. I expect more 365 products lining the shelves of their new format @ 20% discount to third party brands. At a $14 billion market cap, WF is the cheapest valued retail leader star.
The natural and high quality food trend is not going away and likely still in early stages.. There's a few players, let's pick the leader.
I think we'll continue to see growth in the organic grocery sector.
steady though last summer, steady growth over 6 months, established company that doesn't hang its' hat on technology.
I like the U of M store.
eco +health + luxury. quality. expansion. middle america. canada.
As more people are informed about GMO's and food additives the shift will be towards healthier natural foods
huge fan of the business (as a customer and shareholder), the trend (towards healthy eating...my basket also includes CMG, HAIN, PNRA and more), the management team and the innovations/focus (eg, conscious capitalism, earth-friendly, etc).
Larger margins over other grocery store brands. Also has a life-style movement behind it. Who else has a life-style movement in the retail consumer space? SBUX
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