Mar. 7, 2014, 9:20 AM
Mar. 6, 2014, 5:10 PM
- As rumored, Supermarket chain owner Albertsons, controlled by an investor group led by P-E firm Cerberus, is acquiring Safeway (SWY). Investors are unhappy with the specific deal terms. (PR)
- Albertson's will pay $32.50/share in cash, distribute proceeds from the sale of Safeway's real estate subsidiary assets and Casa Ley stake (estimated value of $3.65/share), and distribute Safeway's 37.8M Blackhawk Network (HAWK) shares (current value of $3.95/share).
- The deal is expected to close in Q4, has a $400M termination fee, and comes with a 21-day go-shop period. Albertsons plans to fund the deal with the help of $7.6B in debt financing.
Feb. 19, 2014, 4:18 PM
- In tandem with its Q4 results, Safeway (SWY) announces it's "in discussions concerning a possible transaction involving the sale of the company."
- The company also says it's exploring options for monetizing its 49% stake in Mexican grocery store chain Casa Ley, and has decided to distribute its 37.8M-share, 72.2% stake in Blackhawk Network (HAWK) to shareholders. Blackhawk shares are down 1.2% AH.
- Q4 results, PR
- Previous: Safeway reportedly open to talks with P-E firms
Feb. 19, 2014, 4:11 PM
- Safeway Inc. (SWY): Q4 EPS of $0.53 beats by $0.05.
- Revenue of $11.3B (-17.9% Y/Y) misses by $180M.
- Shares +2.5%.
Jan. 6, 2014, 10:14 AM
- Shares of Whole Foods Market (WFM -4%) are down sharply in early trading as grocery stocks start the week off poorly.
- The move appears related in part to worries of lower store traffic and higher logistical costs for grocery store operators due to the recent winter storms in the U.S.
- Decliners: RNDY -2.4%, VLGEA -1.4%, SFM -1.1%, SWY -0.7%, FWM -2.5%, KR -0.4%, SVU -4.2%.
Dec. 5, 2013, 1:35 PM
- A disappointing pace of sales growth from Kroger (KR -1.9%) has fouled the mood on the grocery store sector a bit.
- The company didn't raise its outlook for FY13 EPS as analysts had expected. A miss by the typically-steady Kroger has analysts resetting expectations for the group.
- Decliners: Safeway (SWY) -3.3%, Delhaize Group (DEG) -1.2%, Ingles Markets (IMKTA) -2.4%, Sprouts Farmers Market (SFM) -1.4%, Whole Foods Market (WFM) -0.9%.
Nov. 21, 2013, 11:18 AM
- Grocery store and restaurants stocks are rallying in force as the two sectors see some rare momentum.
- A couple of factors could be coming into play with jobless claims lower and some key wholesale food costs moderating. A slightly more positive read on food/restaurant spending from key companies is also in the mix.
- Advancers: Safeway (SWY) +2.9%, SuperValu (SVU) +1.5%, Whole Foods Market (WFM) +1.3%, Roundy's (RNDY) +2.5%, Jack In the Box (JACK) +5.6%, BJ's Restaurants (BJRI) +3.1%, Cracker Barrel (CBRL) +2.8%, Ruth's Hospitality (RUTH) +2.5%.
Oct. 23, 2013, 9:57 AM
Oct. 23, 2013, 9:11 AM
Oct. 22, 2013, 11:05 PM
- Reuters reports Cerberus and other P-E firms are "exploring a deal for all or part" of Safeway (SWY). The supermarket chain is said to be reviewing its options with Goldman's help.
- The report comes a month after activist investor Jana Partners disclosed a 6.2% stake in Safeway. Since then, Safeway has announced plans to abandon its money-losing Chicago ops, and has launched a new $2B buyback program. The company is in the midst of selling its Canadian ops to Empire Co. for $5.7B; Canadian regulators just signed off on the deal.
- Shares finished AH trading up 4.1%.
Oct. 18, 2013, 9:10 AM
- Safeway (SWY) reloads its stock repurchase back up to a $2B allowance.
- The company says it has $800M remaining under its previous buyback program.
- SWY +1.9% premarket.
Oct. 11, 2013, 9:11 AM
Oct. 10, 2013, 5:36 PM
Oct. 10, 2013, 4:59 PM
- In tandem with its Q3 results, Safeway (SWY) announces it's leaving the Chicago market by early 2014, and unloading the 72 Domenick's supermarkets it owns in the area. The move will yield a $400M-$450M cash tax benefit, but will also trigger "a multi-employer pension withdrawal liability" that will cost $375M over 20 years.
- Domenick's lost $35.2M ($0.09/share) over the first 9 months of 2013. Excluding Domenick's, Safeway now expects 2013 EPS from continuing ops. of $1.05-$1.12; that's slightly better than prior guidance of $1.02-$1.12, and in-line with a $1.09 consensus. Including Domenick's, guidance now stands at $0.93-$1.
- 2013 free cash flow guidance is now at $600M-$650M vs. a prior $600M-$700M. Full-year capex guidance has been lowered to $850M-$875M from a prior $900M-$950M. No buybacks took place in Q3.
- Same-store sales (exc. fuel) rose 1.9% Y/Y in Q3, and are now expected to see full-year growth of 1.6%-1.9%; prior guidance was 1.5%-2%.
- SWY +5.5% AH. CC about to start.
- Q3 results, PR
Oct. 10, 2013, 4:21 PM
- Safeway (SWY): Q3 EPS of $0.10 misses by $0.06.
- Revenue of $8.62B beats by $0.09B. Shares +4.53% AH. (PR)
Sep. 13, 2013, 8:32 AM
- Shares of Safeway (SWY) are up 3% pre-market after Credit Suisse upgrades the grocer 2 notches to Outperform and raises its PT to $34 from $26.
- The rating change reflects low valuation and the belief that new CEO Robert Edwards is considering options to unlock shareholder value. These include divestment of weaker-performing assets like stores in Southern California, which could yield 20% upside.
Safeway Inc operates a retail food and drug chain in the United States. The Company also has a network of distribution, manufacturing, and food processing facilities.
Industry: Grocery Stores
Country: United States