Safeway (NYSE: SWY) is the second largest supermarket operator in the U.S. after Kroger (NYSE: KR), primarily operating as a food and drug retailer. It has many brands of its own such as Safeway, O Organics, Eating Right, Open Nature, Bright Green, etc. The stock has appreciated a commendable 50% this year but its 2Q2013 results declared last month were mixed as it missed consensus estimates on revenue but more »
SUPERVALU’s (NYSE: SVU) name might imply something extraordinary, but its results have been less than extraordinary lately, as it struggles with declining store profitability and too many brands. SUPERVALU's untimely purchase of Albertson’s grocery chains in 2006 almost proved to be the company’s undoing, as it had limited recourse to pay off its debt maturities.
Fortunately, private equity giant Cerberus and its partners came to the more »
Wholesale distributor and independent retailer SUPERVALU (NYSE: SVU) recently released its quarterly earnings. The results were better than expected as the company was easily able to beat consensus estimates.
If you think that investment in a grocer is not a potentially good use of your money, I think you should reconsider because, according to me, if the company sticks to its plans, it should deliver good returns.
Let’s take more »
Safeway (NYSE: SWY) senior vice president David Bond purchased 5,000 shares of the company’s stock on July 22, according to a Form 4 filed with the SEC. The filing now places Bond’s direct holdings of the grocery store at about 31,000 shares, in addition to about 5,500 shares in his 401k.
According to Insider Monkey’s analysis, stocks bought by insiders tend to narrowly outperform more »
The grocery sector has always been extremely competitive, and it is often those who offer the best deals that come out on top. However, the industry is divided into those who cater to the general public, which is usually the middle class, and those who price products for bargain shoppers. Those who market their products to the general public often experience increased revenue as they increase their offerings. The bargain more »
Supervalu (NYSE: SVU), Safeway (NYSE: SWY), and Kroger (NYSE: KR) have been up double and even triple digits in the last year. Supermarkets still have some of the thinnest margins of any industry so one has to wonder: is the party over?
Go East, young man!
The excitement over Kroger may be justified as it agreed to acquire Harris Teeter supermarkets, a chain of middle to high end supermarkets located more »
Earlier this week Fool blogger Timothy Green wrote a great piece detailing Kroger's (NYSE: KR) expansion plans. But I can't help but feel he missed a key point when discussing the stock's valuation. Here's a snippet from the post:
''Grocery chains have low margins and slow growth, making investing in them usually unappealing. Kroger has seen its share price surge since the middle of 2012, up more »
When thinking about where you want to buy your food, the first consideration has to be quality. Nobody wants to buy rancid meat or moldy bread. Thankfully quality standards for food are pretty high in this country, and supermarkets almost never have spoiled food on their shelves.
After quality, the second biggest factor for practically everyone is price. You want to be sure you're receiving the most bang for more »
Kroger (NYSE: KR), the largest grocery chain in the United States, just got even bigger. The Cincinnati, Ohio-based company recently acquired its smaller rival, Harris Teeter (NYSE: HTSI) for $2.4 billion in cash, adding 212 more stores and bringing its total store count up to 2,631.
"When you combine ignorance and leverage, you get some pretty interesting results."- Warren Buffett
Leverage has many definitions and the quote above relates to the investors and speculators who bet more than they could afford on the housing bubble back in 2008. However, this saying can be applied to companies that use leverage in the form of borrowing, to borrow more that they can afford, gearing up balance sheets in more »
Editor's Note: This initial article stated that Supervalu owns the Shop 'n Save chain; this is incorrect. Shop 'n Save is locally owned and operated with Supervalu supplying the chain. This article has been corrected.
At one time, Supervalu (NYSE: SVU) was one of the largest and most profitable grocery companies in the United States. However, as a result of stiff competition and bad economic conditions, the company’s more »
Safeway (NYSE: SWY) has significantly outperformed the broader markets. Its shares are up 37.50%, as compared to 16% from the greater market. The company is making strides to increase sales through various loyalty program and fuel programs. It's also remodeling its existing stores and pushing private label in an effort to increase profitability. Based on the data, Safeway is a solid buy.
Safeway focuses on its more »
The Kroger Company (NYSE: KR) will continue to invest in pricing discounts with its loyalty cards to improve the price positioning of its products. It has a 50% stake in Dunnhumby USA, which will helps it to move ahead with loyalty cards and other strategic plays. The company also focuses on wellness of customers and one of its fastest growing segments -Natural & Organic food- will drive same store sales growth more »
People need to eat. It's just a fact of life, and as such the supermarket industry fared better than many in the recent downturn. However, several stores still suffered because of longer-term trends.
SuperValu (NYSE: SVU) combines its supermarket business with a wholesale food logistics business. It operates or licenses around 1500 stores, mostly in the budget line Save-A-Lot which has 1,331 stores. The company also operates more »
Sometimes one problem with a company can be so significant, that it can offset even multiple positive factors. I wish that I could ignore the problem that looms at Safeway (NYSE: SWY), but it's just too big of a deal. The company is doing better than some in its industry, but management could be making a critical mistake.
Best Two Out Of Three?
Investors looking for growth and income more »
The worst thing that can happen to a company is for consumers to sort of give up on them and say, "who cares." Unfortunately for Supervalu (NYSE: SVU) it seems like their customers have given up.
The company recently sold the majority of its retail food operations, and this deal was supposed to allow Supervalu to concentrate on its Save-A-Lot business. However, there is just one problem, the Save-A-Lot business more »
With the recent downgrading of two major corporations – Clear Channel (NYSE: CCO) and Supervalu (NYSE: SVU) – by Moody’s (both companies were downgraded to Caa1, or, as defined by Moody’s, “rated as poor quality and very high credit risk,”) which one has potentially worse solvency issues? Which is at higher risk of default? Using three metrics to measure potential solvency issues, we can try to see which company may more »
After announcing another blowout quarter on May 7, shares of Whole Foods Market (NASDAQ: WFM) jumped more than 10% the following day, trading as high as $103 per share on the news:
- Total sales were up 13%; Same-store sales were up an astounding 6.9%
- Operating Margin was a record- 7.5%
- Earnings per share (EPS) increased 19%
Simply put, the company is firing on all cylinders. But by just more »
Prior to Thursday’s 2% loss, shares of SUPERVALU (NYSE: SVU) traded higher by more than 8% on Wednesday after reporting earnings. Strangely enough, the stock actually traded lower by as much as 6.5% before reversing significantly higher. These large gains were not the result of fundamental greatness in the quarter, but rather speculation, and an idea of future greatness.
SUPERVALU & Its “Plan”
For FQ4, SUPERVALU saw revenue of more »
Shares of Safeway (NYSE: SWY), the second largest supermarket chain in North America, were slammed on April 25 after the company reported an increase in earnings on flat revenue growth for the first quarter.
Did investors completely overreact to its admittedly lackluster earnings report? Is this an opportunity for value investors to load up on shares of this grocer, which has consistently played second fiddle to market leader Kroger (NYSE: KRmore »)
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