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Roundy's at Mid-Year


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Here's why the company's stock has suffered this year, and what investors need to keep their eyes on the rest of 2014.

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Roundy's at Mid-Year

  1. 1. Roundy’s at Midyear: 3 Things to Know
  2. 2. 1. Selling Off Rainbow Foods
  3. 3. 1. Selling Off Rainbow Foods • During the first-quarter earnings release, Roundy’s said it would be selling off its 27 Rainbow stores in the Twin Cities. • The company already has an agreement to sell 18 to Twin City grocers. • The other nine will either be sold or simply closed. • Remaining Store Count: • Pick ’n Save: 93 stores, 64% of all locations • Copps: 25 stores, 17% of all locations • Mariano’s 25 stores, 17% of all locations • Metro Market 3 stores, 2% of all locations
  4. 4. 2. Terrible Q1 Results
  5. 5. 2. Terrible Q1 Results • Even though there were more Mariano’s stores in operation for more than a year, same-store sales were down a whopping 5.2% during the first quarter. • Even more alarming, there was an 8% decrease in customer transactions. • Guidance called for continued negative same-store sales throughout the year. • This negative outlook excludes the Rainbow stores, and reflects just how week Roundy’s non-Mariano’s stores are.
  6. 6. 3. What to Watch in 2014
  7. 7. 3. What to Watch in 2014 Same-Store Sales • Taking the company’s guidance into consideration, investors should hope for nothing more than a 1.5% decrease in this metric. Mariano’s • The company has financed its future on the success of Mariano’s. • However, there are lots of natural/organic plays competing in Chicago as well. Listen to Roundy’s conference calls to see if Mariano’s is running into trouble against more established players.
  8. 8. Find out about a small company that could change the way consumer goods are bought and sold around the world. Few have heard of the company; even fewer have invested in it.