WFM Update 2
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  • 2007: Wild Oats operated 109 stores in 23 states and British Columbia, Canada (Capers™ Community Markets) at the time it merged with Whole Foods Market in 2007. (Of those, the 35 Henry's Farmers Markets and Sun Harvest stores were acquired by a separate food retailer.) Wild Oats' similar mission, vision and values along with their knowledgeable and talented Team Members made them a welcome and valuable addition to our team. 1Q: We realize there are a lot of questions out there about how a slowing economy might impact our sales. Historically, our sales have been highly resilient during economic downturns. We attribute our strong sales to many factors, including our loyal core customers and their dedication to a natural and organic lifestyle, our high percentage of perishable product sales, and our extensive selection of high-quality prepared foods that attracts customers trading down from restaurants,” said John Mackey, chairman, chief executive officer, and co-founder of Whole Foods Market 3Q: The Company estimates the negative impact on net income from Wild Oats was approximately $4.9 million, or $0.03 per diluted share, in the quarter
  • July, aug, sep open new stores Oct, nov, dec: December 8, 2010. Whole Foods Market, Inc. (NASDAQ: WFMI) today announced that its Board of Directors has approved a quarterly cash dividend of $0.10 per share Loyalty
  • Q1 Feb 2011 (jan, feb, mar) Responsable 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 Sales growth 7.0% 13.4% 15.2% 14.7% 13.8% (jan16) 12.6% Q2 (April, may, june) These are the strongest overall results we have reported in the past five years. Our solid execution is generating consistent cash flow, and with our long-term debt now fully repaid, we are considering other uses for our growing cash balance, including accelerating our growth, raising our dividend and repurchasing stock,” said John Mackey co-founder and co-chief executive officer of Whole Foods Market. “We are very proud of our balance sheet and that, despite a much tougher year-ago comparison, we are reporting our sixth consecutive quarter of accelerating two-year identical store sales growth. Based on our results for the quarter, we have raised our earnings outlook by $0.10 for the year 2011 2010 ( in thousands) Total liabilities 1,433,839 1,613,282 2010 2009 Total liabilities 1,805,201 1,742,460 Q3: July 3 price image Average development cost per square foot $261 Total liabilities 1,268,435
  • Price image
  • Following the announcement of USA credit downgrade from AAA to AA the Stock Market plums including local companies such as Dell, National Instrument, and WFM
  • 2008/2009: merged of Wild Oats, expansion. 2010 and 11: payoff large debt End of year 2010: board approves dividend of .10 cents
  • Whole Foods Market's Local Producer Loan Program (LPLP) provides up to $10 million in low-interest loans to small, local producers. Loans range from $1,000 to $100,000 and can be for things like purchasing more animals, investing in new equipment or converting to organic production. minimize the fees, interest rates and paperwork that can often get in the way of a small local farm or business taking the next step to expand its operations. Whole Foods Market believes that sustainable seafood comes from responsibly managed fish farms and marine fisheries that maintain healthy fish populations and ecosystem Provide informed consumer choice with regard to genetically engineered ingredients (also known as GMOs or Genetically Modified Organisms). We do this through our support of organic agriculture along with our commitment to source our 365 Everyday Value and Whole Foods Market brand products to avoid GMOs. When developing WFM brand products, they work with manufacturers to source non-genetically engineered ingredients. If those ingredients are not commercially available, they encourage producers to work to meet this goal. Beginning in July 2009, WFM established a partnership with the Non-GMO Project to verify and label the store brand food products using the nation’s first authoritative standard.
  • Whole Foods Market's Local Producer Loan Program (LPLP) provides up to $10 million in low-interest loans to small, local producers. Loans range from $1,000 to $100,000 and can be for things like purchasing more animals, investing in new equipment or converting to organic production. minimize the fees, interest rates and paperwork that can often get in the way of a small local farm or business taking the next step to expand its operations. Whole Foods Market believes that sustainable seafood comes from responsibly managed fish farms and marine fisheries that maintain healthy fish populations and ecosystem Provide informed consumer choice with regard to genetically engineered ingredients (also known as GMOs or Genetically Modified Organisms). We do this through our support of organic agriculture along with our commitment to source our 365 Everyday Value and Whole Foods Market brand products to avoid GMOs. When developing WFM brand products, they work with manufacturers to source non-genetically engineered ingredients. If those ingredients are not commercially available, they encourage producers to work to meet this goal. Beginning in July 2009, WFM established a partnership with the Non-GMO Project to verify and label the store brand food products using the nation’s first authoritative standard.
  • The P/E ratio ( price-to-earnings ratio ) of a stock (also called its "P/E", or simply "multiple") is a measure of the price paid for a share relative to the annual net income or profit earned by the firm per share. [2] The P/E ratio can therefore alternatively be calculated by dividing the company's market capitalization by its total annual earnings. The price to earnings ratio (PE Ratio) is the measure of the share price relative to the annual net income earned by the firm per share. PE ratio shows current investor demand for a company share. A high PE ratio generally indicates increased demand because investors anticipate earnings growth in the future. The PE ratio has units of years, which can be interpreted as the number of years of earnings to pay back purchase price. PE ratio is often referred to as the "multiple" because it demonstrates how much an investor is willing to pay for one dollar of earnings. PE Ratios are sometimes calculated using estimations of next year's earnings per share in the denominator. When this happens, it is usually noted. Market Capitalization (Market Cap) is a measurement of business value based on share price and number of shares outstanding. It generally represents the market's view of a company's stock value and is a determining factor in stock valuation.
  • The P/E ratio ( price-to-earnings ratio ) of a stock (also called its "P/E", or simply "multiple") is a measure of the price paid for a share relative to the annual net income or profit earned by the firm per share. [2] The P/E ratio can therefore alternatively be calculated by dividing the company's market capitalization by its total annual earnings. The price to earnings ratio (PE Ratio) is the measure of the share price relative to the annual net income earned by the firm per share. PE ratio shows current investor demand for a company share. A high PE ratio generally indicates increased demand because investors anticipate earnings growth in the future. The PE ratio has units of years, which can be interpreted as the number of years of earnings to pay back purchase price. PE ratio is often referred to as the "multiple" because it demonstrates how much an investor is willing to pay for one dollar of earnings. PE Ratios are sometimes calculated using estimations of next year's earnings per share in the denominator. When this happens, it is usually noted. Market Capitalization (Market Cap) is a measurement of business value based on share price and number of shares outstanding. It generally represents the market's view of a company's stock value and is a determining factor in stock valuation.

WFM Update 2 WFM Update 2 Presentation Transcript

  • Leadership and Financial Performance Summer 2011 Prof: Amy Burnett, Ph.D. WFM: Update #2 By Marion Sanchez
  • Twitter:
    • #hatchback
    Twitter: Hatchtag:#WFM2 for the presentation http://www.houstoncars.org/wp-content/uploads/524b9640825f_12ED3/2009hondafit6.jpg
  • Outline
    • Corporate Leadership & Ethics
    • Stock Return Chart Comparison
    • Summary of Latest Earnings
    • Dividend History
    • Can you make me money?
    • Questions and answers
    Sanchez, M. Original photo.
  • Corporate Leadership & Ethics (Follow Up)
    • In 2006, John Mackey slashed his salary from $1 million to $1.
    • Additionally, proceeds from his stock options are donated to charity.
    Hamner, S. "Whole Foods CEO John Mackey slimmed down the grocery chain's executive salaries, resulting in a healthier, happier company“. CNN Money (2006). Retrieved from http://money.cnn.com/galleries/2007/biz2/0705/gallery.contrarians.biz2/3.html Sanchez, M. original photo.
  • Stock Return Chart Comparison (Grocery Stores 5-years) http://finance.yahoo.com/q/bc?s=WFM&t=5y&l=on&z=m&q=l&c=%5EYHOh839%2C%5EGSPC%2C%5EIXIC%2C%5EDJI
  • Stock Return Chart Comparison (Grocery Stores 1-year) http://finance.yahoo.com/q/bc?s=WFM&t=1y&l=on&z=m&q=l&c=%5EYHOh839%2C%5EGSPC%2C%5EIXIC%2C%5EDJI
  • Stock Return Chart Comparison (Grocery Stores 6-months) http://finance.yahoo.com/q/bc?t=6m&s=WFM&l=on&z=m&q=l&c=%5EYHOh839&c=%5EGSPC&c=%5EIXIC&c=%5EDJI
  • Stock Return Chart Comparison (Grocery Stores 3-months) http://finance.yahoo.com/q/bc?s=WFM&t=3m&l=on&z=m&q=l&c=%5EYHOh839%2C%5EGSPC%2C%5EIXIC%2C%5EDJI
  • Stock Return Chart Comparison (Grocery Stores 5-days) http://finance.yahoo.com/q/bc?s=WFM&t=5d&l=on&z=m&q=l&c=%5EYHOh839%2C%5EGSPC%2C%5EIXIC%2C%5EDJI
  • Stock Return Chart Comparison http://ycharts.com/companies/WFM/price#compCos=SWY,KR,SVU Sanchez, M. Original photo. http://ycharts.com/companies/WFM/price#compCos=SWY,KR,SVU
  • Summary of Latest Earnings
    • Wednesday July 3, 2011
    • Comparable Store Sales Increase 8.4%
    • Company Produces 5.9% Operating Margin
    • Earnings per Share $0.50
    • Sales for the quarter increased 11% to $2.4 billion
    • Net income increased 35% to $88.5 million
    • Diluted earnings per share increased 30% to $0.50
    http://finance.yahoo.com/news/Whole-Foods-Market-Reports-pz-3915754322.html?x=0&.v=1
  • Summary of Latest Earnings "We are continuing to gain market share at a faster rate than most public food retailers as reflected in our 8.5% comparable store sales growth year to date. We attribute much of our success to our value efforts, which have improved our price image , and to continuing to raise the bar in areas that matter to our customers, particularly quality standards and health and wellness.” Walter Robb, co-chief executive officer of Whole Foods Market http://finance.yahoo.com/news/Whole-Foods-Market-Reports-pz-3915754322.html?x=0&.v=1
  • Dividend History
    • DIVIDENDS (Trailing 12 Quarters)
    • Dividend Yield: .68%
    http://www.dailyfinance.com/quote/nasdaq/whole-foods-market/wfm/earnings-growth-rates http://eresearch.fidelity.com/eresearch/evaluate/fundamentals/earnings.jhtml?stockspage=dividends&symbols=WFM
  • Can you make me money? Sanchez, M. Original Photo.
  • My .02 cents…
    • Loyalty
    • Responsible
    • Community
    • Risk
    • Basic human need
    Sanchez, M. Original Photo.
  • My Shoe Philosophy:
    • Buy: If it is on sale
    • Keep: If it is still fashionable
    • Let go: If it stops working
    Donate to Goodwill! Sanchez, M. Original Photo.
  • “But don’t take my word for it.”
    • LeVar Burton:
    • Reading Rainbow , PBS
    • Navigator/chief engineer Geordi LaForge on Star Trek: The Next Generation
    http://magazine.washcoll.edu/2009/winter/01.php
  • Analyst recommendations
  • What else?
    • Austin, Texas
    • Perseverance, creativity, and purpose
    • Social responsible corporation
    • July 27 and now:
      • Trade: 65.43, now 54.00
      • Market Cap: 11.50B, now 9.57B
      • P/E: 37.67, now 29.25
    • Aim: 1000 stores
    • Leadership
  • Final recommendation
    • BUY!
  • Any questions? Thank you! Presentation available @ SlideShare: