Kroger Looks Like A Sell
Weighing Machine • 34 Comments
Weighing Machine • 34 Comments
Kroger: Cleaning Up On Aisle 1 ... And 2, 3, 4 ...
DAG Investments • 19 Comments
DAG Investments • 19 Comments
Mon, Mar. 14, 7:43 AM
- Shares of The Fresh Market (NASDAQ:TFM) soar in early trading after the company agrees to a cash tender offer from P-E firm Apollo Global Management (NYSE:APO).
- The P-E firm will pay $28.50 per share for the grocery store chain for a deal price of $1.36B.
- Under the terms of the deal, The Fresh Market has 21 days to solicit other offers, putting Kroger (NYSE:KR) on a short clock.
- Previously: Reuters: Apollo nears deal to acquire The Fresh Market (Mar. 13 2016)
- TFM +22.93% premarket to $28.25.
Thu, Mar. 3, 2:40 PM
- Kroger (NYSE:KR) is down 8.1% after setting guidance for FY16 same-store sales growth to a range of 2.5% to 3.5% which mark a deceleration from last year's pace. Also factoring in was the miss with Q4 revenue.
- CEO Rodney McMullen said economic uncertainty and volatile food prices cut into the willingness of consumers to spend freely. Kroger is also a victim of its own success as strong comps from prior years become harder to match.
- Volume on Kroger is already 3X normal daily activity.
- SA contributor Christopher Davis thinks the slide in Kroger gives investors an excellent entry point.
- Previously: Kroger beats by $0.03, misses on revenue (March 3)
- Previously: Kroger lower after revenue comes in light (March 3)
Thu, Mar. 3, 9:15 AM
Fri, Feb. 12, 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, 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
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.
Dec. 3, 2015, 9:03 AM
- Kroger (NYSE:KR): Q3 EPS of $0.43 beats by $0.04.
- Revenue of $25.08B (+0.4% Y/Y) misses by $140M.
- Shares +2.99% PM.
Nov. 5, 2015, 10:12 AM
- Grocery store stocks Natural Grocers by Vitamin Cottage (NGVC -1.7%), Ingles Markets (IMKTA -1.5%), Roundy's (RNDY -0.9%), Fairway Group (FWM -1.7%), SuperValu (SVU -1.7%), and Village Super Markets (VLGEA -0.8%) all trade below broad market averages following the Whole Foods Market earnings report.
- The Whole Foods conference call may be on the mind of investors with management appearing to give up some ground on pricing and expressing confidence on the new value brand roll-out.
- Even Kroger (KR -0.2%) which has Whole Foods beat at scale and profitability is trading a bit weak. The outlier is Sprouts Farmers Market which is flying off of earnings.
- Previously: Sprouts Farmers Market flies after comps come in strong (Nov. 05 2015)
- Previously: Whole Foods Market and rivals at the crossroads (Nov. 04 2015)
Sep. 11, 2015, 9:19 AM
- Kroger (NYSE:KR) reports revenue rose 5.7% in Q2 before factoring in fuel sales.
- Identical supermarket sales increased 5.3% (ex-fuel).
- FIFO gross margin rate -7 bps to 21.5%.
- Return on invested capital, on a rolling four quarters basis, came in at 14.24%.
- Guidance: Identical supermarket sales growth of 4.0% to 5.0% is anticipated for FY15. The company says it expects FY15 EPS of $1.92-$1.98 vs. $1.90-$1.95 prior and $1.96 consensus.
- Previously: Kroger beats by $0.04, beats on revenue
- KR +6.95% premarket to $37.86.
Sep. 11, 2015, 9:11 AM
Jun. 25, 2015, 11:50 AM
- Kroger (NYSE:KR) announces a two-for-one stock split and new $500 share repurchase program.
- The company's quarterly dividend is also lifted to $0.21/share which will fall to a $0.105 level after the split.
- Previously: Kroger blasts past all comers (Jun. 18 2015)
- Previously: The Kroger Co. declares $0.105 dividend
- KR +1.33% to $73.91 vs. the all-time high of $77.74 in late March.
Jun. 18, 2015, 8:48 AM
- Kroger (NYSE:KR) reports identical store sales rose 5.7% in FQ1 (ex-fuel).
- FIFO gross margin rate -7 bps to 22.1%.
- Operating expense rate -15 bps.
- Rent expenses were flat at 0.7% of total sales.
- Guidance: Kroger sees FY15 EPS of $3.80-$3.90 vs. $3.87 consensus.The view on comp sales is lifted by the company to a range of 3.5%-4.5% vs. 3.0%-4.0% prior.
- Previously: Kroger beats by $0.03, misses on revenue
- KR +2.39% premarket to $74.65.
May 11, 2015, 10:52 AM
- Delhaize (NYSE:DEG) is up 13.3% after reports on a merger with Ahold (OTCQX:AHONY +3.8%) drove up shares listed in Europe earlier today.
- The talk of industry consolidation has some other U.S. grocery stocks ahead of market averages as well.
- Grocery gainers: Kroger (NYSE:KR) +1.0%, Whole Foods Market (NASDAQ:WFM) +1.2%, Roundy's (NYSE:RNDY) +1.0%, Supervalu (NYSE:SVU) +1.0%, Fairway Group (NASDAQ:FWM) +0.9%, Ingles Markets (NASDAQ:IMKTA) +9.8% with earnings also a factor.
- Previously: Ahold, Delhaize surge on merger reports
Mar. 5, 2015, 12:44 PM
- Strong reports from Kroger and Delhaize are helping to provide a lift for the grocery store sector.
- Earlier this week, privately-owned Publix reported comparable-store sales rose 6.4% in Q4.
- Comps are on the rise and margin gains are being squeezed out by operators off of the sales leverage.
- Solid gains for the day on strong volume are being seen up and down the group: Kroger (NYSE:KR) +4.9%, Whole Foods Market (NASDAQ:WFM) +1.6%, Supervalu (NYSE:SVU) +1.5%, Delhaize (NYSE:DEG) +3.7%, The Fresh Market (NASDAQ:TFM) +1.2%, Ingles Markets (NASDAQ:IMKTA) +2.3%, Fairway Group (NASDAQ:FWM) +2.6%, Roundy's (NYSE:RNDY) +14.9%.
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. The Combination Food and Drug Stores are the primary food store... More
Industry: Grocery Stores
Country: United States
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