What's your position on ?
Why are you ish?
You voted ish on Vote again
Posts appear on the My Feed page of subscribers to this ticker
Yesterday, 9:26 AM
- Stifel Nicolaus sets its sights on the grocery store sector after yesterday's dramatic report of Kroger's (NYSE:KR) interest in a buyout of The Fresh Market (NASDAQ:TFM).
- The investment firm gives Kroger a Buy rating and $45 price target after digesting the consolidation potential. Kroger's M&A spree over the last few years already includes Roundy's, Vitacost, and Harris Teeter - although management has been credited with successful integration strategies.
- Investors have been rewarded from Kroger's growth push with shares of the grocery store chain outperforming the S&P 500 Index by a wide margin (+215% vs. +36% over 5 years).
- Sprouts Farmers Market (NASDAQ:SFM) is also given a Buy rating from Stifel and assigned a PT of $27.
- Previously: The Fresh Market closes +22% on buyout spike, more room to run? (Feb. 11 2016)
- SFM +2.1% premarket to $22.55 vs. a 52-week range of $16.41 to $38.45.
- TFM +1.81% premarket to $23.09 vs. a 52-week range of $17.81 to $42.09.
- WFM +1.90% premarket to $29.48 vs. a 52-week range of $28.07 to $57.57.
- KR +1.95% premarket to $37.14 vs. a 52-week range of $27.32 to $42.75.
Thu, Feb. 11, 4:11 PM
- Shares of The Fresh Market (NASDAQ:TFM) accelerated into the close to end the day with a tidy 22% gain with Kroger reportedly bidding for the chain.
- Morgan Stanley thinks there could be some upside left as the bidding and strategic actions plays out, calling out a $30 deal price in a fresh note.
- Kroger (NYSE:KR) ended the day down a mild 1.1%, with some traders uneasy over the potential M&A play. If Kroger does win the bidding for TFM, it plugs a nice gap the grocery store operator has in the Northeast.
- Kroger's supermarket map (via Dow Jones' Kevin Kingsbury)
- Previously: Reuters: Kroger seek buyout of The Fresh Market (Feb. 11)
- Previously: Grocery store stocks buzzing off of consolidation talk (Feb. 11)
- Previously: The Fresh Market +13% with Kroger and others in bidding process (Feb. 11)
Thu, Feb. 11, 2:30 PM
- The Fresh Market (NASDAQ:TFM) breaks away from a trading halt to soar 13.40% to $21.07 in reaction to a report of a Kroger (KR -1.3%) acquisition play. It's been three weeks since TFM was over the $20 mark.
- The report from Reuters indicates bidding from PE firms and other companies is already in the second round.
- The breadth of interest is helping push up shares of Sprouts Farmers Market, Whole Foods Market, and Ingles Markets as well.
Thu, Feb. 11, 1:59 PM
Tue, Feb. 2, 11:24 AM
- A plan by Kroger (KR -1%) to use a private distributor to manage shelf space in alcohol aisles is creating a stir with large sellers such as Anheuser-Busch InBev (BUD -0.7%) and Diageo (DEO -0.6%).
- Trade groups repping the beer and spirits majors say the Kroger initiative to charge quarterly fees to pay for the service may violate federal and state laws.
- Kroger wants to make the change in order to adapt quicker to consumer tastes and trends.
Mon, Feb. 1, 10:46 AM
- Strong volume numbers out of Sysco this morning aren't going unnoticed by grocery store investors.
- With a large percentage of the market showing losses, Whole Foods (WFM +1.9%), The Fresh Market (TFM +0.1%), and Kroger (KR +1.8%) are all higher. Related food seller Casey's General Stores (CASY +0.9%) is also in positive territory.
- Previously: 52-week high for Sysco after earnings shine (Feb. 1)
Fri, Jan. 29, 10:28 AM
- Grocery store stocks are early outperformers on the day.
- Supervalu (SVU +6.3%), Kroger (KR +2.6%), The Fresh Market (TFM +2.7%), SpartanNash (SPTN +2.8%), Sprouts Farmers Market (SFM +2.8%), and Whole Foods Market (WFM +3.2%) are all drawing in buyers.
- Traders are pointing to the macroeconomic climate and valuation as catalysts. Earlier, SA contributor Hawkinvest pitched the case that SVU is vastly undervalued.
Sat, Jan. 23, 2:46 PM
- The economic cost of the blizzard hitting the East Coast could run as high as $850M, according to a forecast from Planalytics.
- The tally includes lost productivity and a lower level of consumer spending over the duration of the storm - even after factoring in the impact of consumers stockpiling from chains such as Home Depot (NYSE:HD), Lowe's (NYSE:LOW), Wal-Mart (NYSE:WMT), and Kroger (NYSE:KR).
- The storm is broad enough to impact domestic traffic numbers for restaurant chains (MCD, QSR, WEN, CMG, DENN, DNKN, SBUX) and movie theater operators (RGC, CKEC, CNK, AMC).
- The number of cancelled flights tied to the storm is tracking rapidly toward 10K. U.S. airlines (LUV, AAL, JBLU, UAL, DAL) have become more efficient with managing major storms, but will still take a hit to Q1 revenue.
- Looking ahead: Though harsh U.S. winters have lopped off as much as 1% to 2% from retail sales in the past, the 2015-2016 season still sits comfortably in the historical range used by economists when making their projections.
- Previously: Blizzard rally for HD, LOW, BGG, TTC, ACAT, COLM, and BDE (Jan. 22)
- Previously: Storm alert for Shake Shack and Dunkin' Donuts (Jan. 22)
- Retail ETFs: XLP, XLY, VDC, XRT, VCR, RTH, RETL, FXG, PBJ, IYK, IYC, FXD, PEJ, FDIS, RHS, FSTA, SCC, UCC, RCD, PMR, PEZ, UGE, PSL, PSCC, PSCD, SZK, BITE
Fri, Jan. 15, 1:52 PM
Dec. 18, 2015, 2:29 PM| Dec. 18, 2015, 2:29 PM | 12 Comments
Dec. 18, 2015, 7:45 AM
- The number of organic food offerings at traditional grocery stores stands 35% to 50% higher than a year ago, according to an estimate from Piper Jaffray.
- The development continues to pressure specialty grocery store chains such as Fairway Group (NASDAQ:FWM), Sprouts Farmers Market (NASDAQ:SFM), Whole Foods Market (NASDAQ:WFM), and Natural Grocers By Village Cottage (NYSE:NGVC) which expected to dominate the organic food sector.
- BB&T sees Fairway as in the toughest position of the bunch. Recent earnings reports indicate Kroger (NYSE:KR) and Target (NYSE:TGT) are stealing organic market share.
- "We’re definitely in a little bit of a shakeout right now, and I don’t expect that all of these specialty grocers are going to survive," warns PJ analysts Sean Naughton.
Dec. 15, 2015, 9:33 AM
- Egg prices fell 4.8% in November to follow a 3.8% slide in October.
- The level of egg prices is still 23.7% higher than a year ago, due largely to the avian flu issue earlier this year.
- Milk prices were also lower during November, down 0.7% M/M and 7.7% Y/Y. The broader dairy category saw price declines of 3.4% Y/Y and 0.6% M/M.
- These are some of the companies that talked about milk or egg prices being a factor during their most recent earnings conference call: CALM, KO, DF, WWAV, GIS, POST, KR, DG, OTCPK:PRRFY, BDBD, GTIM, BOBE, HRL, FLO, JJSF, DENN, MCD.
- BLS CPI data
Dec. 7, 2015, 2:22 PM
- Select consumer staples continue to show some resiliency after last week's U.S. jobs report came in strong.
- Personal care stocks Avon Products (AVP +4%), Estee Lauder (EL +1.6%), and Elizabeth Arden (RDEN +3.2%) are all higher. Activist investors circling Avon are also a factor along with the consumer spending optimism.
- The grocery store sector is up solidly, led by Kroger (KR +2.2%), Sprouts Farmers Market (SFM +2.2%), Ingles Markets (IMKTA +0.7%), and Supervalu (SVU +1.8%). Whole Foods Market (WFM +4.3%) is also up a brisk 4.3%, although the company tiptoes the line between discretionary and staples.
- The buying action on the names above along with the strong day for the beverage sector have been enough to keep the S&P Consumer Staples ETF (NYSEARCA:XLP) in positive territory even with broad market averages lower.
- Last week: Rally mode for consumer-facing stocks (Dec. 04 2015)
- ETFs: XLP, VDC, FXG, RHS, FSTA
Dec. 3, 2015, 1:06 PM
- Moody's forecasts retail sales will improve 4% to 5% during the first half of 2016.
- Sub-sectors expected to see strong earnings growth include home improvement (HD, LOW), auto parts (AN, ORLY, AAP, PBY), and supermarkets (KR, SVU, WMK, SFS).
- Improvement is seen for the restaurant and apparel sub-sectors, although margin gains will be challenging to bring home.
- E-commerce will continue to outperform broad retail, says Moody's.
- Related ETFs: XLP, XLY, VDC, XRT, VCR, RTH, RETL, FXG, PBJ, IYK, IYC, FXD, PEJ, FDIS, RHS, FSTA, SCC, UCC, RCD, PMR, PEZ, UGE, PSL, PSCC, PSCD, SZK, BITE
Dec. 3, 2015, 9:34 AM
- Kroger (NYSE:KR) reports sales increased 5.5% in Q3 before factoring in fuel sales.
- Identical supermarket sales increased 5.4% (ex-fuel).
- FIFO gross margin rate -4 bps to 22.4%. Operating profit rate +50 bps to 3.1%.
- Return on invested capital on a rolling four quarters basis came in at 14.16%.
- Guidance: The company says it expects FY15 EPS of $2.02-$2.04 vs. $1.92-$1.98 and $2.00 consensus. The rate of profit growth is ahead of long-term targets.
- Kroger is up 3.3% in opening trades to a new all-time high.
Dec. 3, 2015, 9:03 AM
The Kroger Co operates retail food and drug stores, multi-department stores, jewelry stores, and convenience stores throughout the United States. It also manufactures and processes some of the food for sale in its supermarkets.
Other News & PR