The Kroger Co.
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The Best Big Box Grocer for Buy-and-Hold Investors
By Ted Cooper - April 23, 2013 | Tickers: COST, KR, WMT
True buy-and-hold investors -- those who really do buy and hold stocks virtually forever -- need not focus too much on valuation, so long as a company is not priced through the roof. On a long enough time horizon, overpaying by 20% will not have a significant effect on compounded returns. Therefore, buy-and-hold investors should focus their efforts on buying great companies that will continue to grow shareholder value for decades into more »
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This Grocer Could Continue To Outperform
By Piyush Arora - April 19, 2013 | Tickers: SWY, KR, WFM
The general thesis is that grocery stores have steady revenues and consistent profits because “people need to consume.” But, shares of Kroger (NYSE: KR) have risen by around 45% over the last year, yet its shares appear to be undervalued. Naturally, one may question the overly optimistic estimates and conclude that the deal is too good to be true. Yet, here are a few reasons why Kroger appears to be more »
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Likely a Profitable Spin-Off Later This Year
By Mike Thiessen - April 18, 2013 | Tickers: FLWS, KR, UNTD
Although it made an initial announcement of the deal back in the third quarter of 2012, a number of operational hurdles have forced United Online (NASDAQ: UNTD) to delay the closing of its much-anticipated FTD spin-off until the end of the third quarter of 2013. This delay is due largely to weak performance in other areas of the company's portfolio as well as standard logistical obstacles that afflict many more »
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This Grocer Could Continue to Outperform
By Piyush Arora - April 16, 2013 | Tickers: SWY, KR, WFM
The general thesis is that grocery stores have steady revenues and consistent profits, because “people need to consume.” But shares of Kroger Co. (NYSE: KR) have risen by around 45% over the last year, yet its shares appear to be undervalued. Naturally, one may question the overly optimistic estimates and conclude that the deal is “too good to be true”. But here are a few reasons why Kroger Co. appears more »
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Likely A Profitable Spin-Off Later This Year
By Mike Thiessen - April 16, 2013 | Tickers: FLWS, KR, UNTD
Although it made an initial announcement of the deal back in the third quarter of 2012, a number of operational hurdles have forced United Online (NASDAQ: UNTD) to delay the closing of its much-anticipated FTD spin-off until the end of the third quarter of 2013. This delay is due largely to weak performance in other areas of the company's portfolio as well as standard logistical obstacles that afflict many more »
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Time for these Grocers to Turn the Page
By Mike Thiessen - April 15, 2013 | Tickers: SWY, SVU, KR
It is no secret that supermarket and food-distribution chain Supervalu (NYSE: SVU) has struggled mightily over the last few years. Since 2012, the company has taken several steps to right the ship and regain the shattered confidence of its investors. In late March of 2013, Supervalu announced an additional round of layoffs and open-position reductions to complement its completed sale of the Albertsons grocery chain to Cerberus Capital Management.
Supervalu more »
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Time for these Grocers to Turn the Page
By Mike Thiessen - April 15, 2013 | Tickers: SWY, SVU, KR
It is no secret that supermarket and food-distribution chain Supervalu (NYSE: SVU) has struggled mightily over the last few years. Since 2012, the company has taken several steps to right the ship and regain the shattered confidence of its investors. In late March of 2013, Supervalu announced an additional round of layoffs and open-position reductions to complement its completed sale of the Albertsons grocery chain to Cerberus Capital Management.
Supervalu more »
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Attractive Dividend Yield Does Not Compensate For High Gearing
By Mark Lin - April 15, 2013 | Tickers: RNDY, SWY, KR
Despite sporting an attractive annualized dividend yield of 7% and being significantly undervalued relative to peers, Roundy's (NYSE: RNDY) is heavily leveraged with a gross debt-to-equity ratio of 360%. Moreover, Roundy's previously cut its dividend by half and there is no guarantee that its current dividend will not cut in future.
Founded in Milwaukee in 1872, Roundy’s is a leading Midwest supermarket chain with close to 160 more »
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A Look at the Challenges Facing Discounters
By Lee Samaha - April 14, 2013 | Tickers: DG, DLTR, FDO, KR, TJX
It’s been an unusual year for the dollar stores. For much of the first half of 2012 they looked overvalued, even as they continued to generate impressive earnings growth. They were seen as the great trading down play, and for good reason. The problem is that when everyone sees it that way, it becomes hard to get a decent entry point. Roll on the second half of 2012 and more »
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Time To Turn The Page After Struggles
By Mike Thiessen - April 12, 2013 | Tickers: SWY, SVU, KR
It is no secret that supermarket and food-distribution chain Supervalu (NYSE: SVU) has struggled mightily over the last several years. Since 2012, the company has taken several steps to right the ship and regain the shattered confidence of its investors. In late March of 2013, Supervalu announced an additional round of layoffs and open-position reductions to complement its completed sale of the Albertsons grocery chain to Cerberus Capital Management.
Supervalu more »
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Why You Should Invest in These Grocery Stocks
By Madhu Dube - April 12, 2013 | Tickers: GIS, KR, WFM
As grocery companies expand globally via acquisitions or by increasing their store count, it results in big dents in their cash balances. Though this higher capital expenditure definitely indicates better growth opportunities for the companies, it also tightens their cash positions.
In a scenario like this, shareholders remain a bit concerned about their returns. Consequently, the companies need to strike a perfect balance between their capital expenditure and shareholders' returns more »
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Secure Your Portfolio With These "Food Chain" Companies
By Steve Van - April 11, 2013 | Tickers: ADM, MON, RUTH, SYY, KR
With market indexes hovering near all-time highs after significant advances this year, investing in defensive stocks is one way to protect your investments if a significant correction takes a bite out of stocks. One defensive theme that I like is “food chain” stocks because food is essential for human life and therefore these companies generate recurring revenues from constant consumer demand. From seed companies to food processors and the food more »
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What's Growing at Whole Foods
By Adam Levy - April 10, 2013 | Tickers: NGVC, KR, WFM
Whole Foods’ (NASDAQ: WFM) stock has come under pressure lately. Since releasing its earnings forecast in February below analysts’ expectations, the stock has fallen about 14%. Adding to the pressure is a downgrade from Piper Jaffray at the end of last month. Worries of slowing sales growth and compressed margins have some investors afraid. But as the Fool’s favorite investor wisely said, be greedy when others are fearful. That more »
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Whole Foods Market: A Banquet of Solid Results
By Brenda Johnson - April 8, 2013 | Tickers: SWY, SVU, KR, WFM
One of the top performers in my portfolio has been Whole Foods Market (NASDAQ: WFM), with a 140.87% gain in stock price since my purchase in 2010. When faced with the choice of profit taking vs holding for the long term, I chose to hold. Why? This Fool is no fool - I believe strongly in the market power of bringing good and wholesome food to the American public, especially more »
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Secure Your Portfolio With These 'Food Chain' Stocks
By Steve Van - April 8, 2013 | Tickers: ADM, MON, RUTH, SYY, KR
With market indexes hovering near all-time highs after significant advances this year, investing in defensive stocks is one way to protect your investments if a significant correction takes a bite out of stocks. One defensive theme that I like is “food chain” stocks because food is essential for human life and therefore these companies generate recurring revenues from constant consumer demand. From seed companies to food processors and the food more »
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I Like The Company, But These 3 Numbers Worry Me
By Chad Henage - April 1, 2013 | Tickers: TGT, KR, WMT, WFM
For a while I've pretty much ignored an entire industry in the stock market. I've really had nothing to do with any grocery related company, except through ownership of Target (NYSE: TGT), and I didn't buy Target because of their push into the grocery business. To be blunt, the grocery business is cutthroat, margins are terrible, and many companies just seemed to be on bad financial footing more »
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Whole Foods Market: A Banquet of Solid Results
By Brenda Johnson - March 24, 2013 | Tickers: SWY, SVU, KR, WFM
One of the top performers in my portfolio has been Whole Foods Market (NASDAQ: WFM), with a 140.87% gain in stock price since my purchase in 2010! When faced with the choice of profit taking vs holding for the long term, I chose to hold. Why? This Fool is no Fool - I believe strongly in the market power of bringing good and wholesome food to the American public, especially more »
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Browsing the Shelves for a Grocery Stock
By Austin Higgins - March 23, 2013 | Tickers: SWY, KR, WFM
Which grocery company is the most attractive to investors? Wal-Mart and Costco are the first major grocery stores that come to mind. But are the most popular companies always the best investment? Kroger (NYSE: KR), Safeway (NYSE: SWY), and Whole Foods Market (NASDAQ: WFM) offer alternative investment options in the grocery stores industry.
Market Cap
2012 Revenue
2012 Net Income
Kroger
$16.38 billion
$90.3 billion
$602 million
Safeway more »
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This Grocery Store Is the Best Bet
By Ted Cooper - March 21, 2013 | Tickers: SWY, KR, WFM
Grocery stores have had a rough go of it since the recession, but one grocery store stands out from the pack and represents a great buy.
Industry Mechanics
There are basically two ways to earn a profit in the grocery industry: earn a high margin or make a high number of sales per dollar of assets (asset turnover).
The most commonly-used model is based on asset turnover. Low prices and more »
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Hain Celestial's Counterattack
By Eric Novinson - March 19, 2013 | Tickers: HAIN, K, KR, WFM
Hain Celestial (NASDAQ: HAIN) could soon have a much wider moat, even if more competitors enter the organic food business. The natural food company recently announced a wide variety of new product launches and upgrades that include products with Bisphenol A (BPA) free packaging, and reiterated its support for GMO labeling laws. Private label competition remains a threat, but competitors could have difficulty matching Hain's moves here.
Organic Competition more »