Stone Fox Capital
Long/short equity, growth at reasonable price, research analyst, deep value

The Not So Fresh Market

After disappointing guidance, The Fresh Market (NASDAQ:TFM) slumped 13% due in a large point to very high expectations for the grocery chain. Sure the organic and fresh grocer plays in a compelling secular trend, but it also faces a tough competitive environment with several companies raising significant funds to expand regional footprints. Not to mention the sector leader has made a big deal about driving down prices to produce growth.

The company operates 136 stores in 26 states and expects to open 21 to 22 stores this year with a high concentration in Q3. With the U.S. supermarket listed as a $600 billion industry, Fresh Market has plenty of room to grow. The Nutrition Business Journal estimates that...

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