1. • U.S. Based Supermarket Chain
• Operates specifically within the “Natural and Organic Foods
Supermarkets” segment
• World’s leading retailer of natural and organic foods, currently holding a 15%
market share of the $65B segment
• Market segment is growing more rapidly than the overall retail grocery industry
• Whole Foods Market, Inc. was the first “Certified Organic Retailer”
• Currently operates 311 stores and employs 64,200 staff
• Differentiated Product Offering
• High quality natural and organic foods with a strong emphasis on
perishables, offered at multiple price points
• Publically traded on NASDAQ since 1992 – 18.6B Market Capitalization
• Has delivered returns to shareholders through dividends and price
appreciation (Stock price up > 1000% from 2008 low)

2. Key Risks Key Merits
• Exposure to global macroeconomic • Whole Foods is already the market
factors leader in their segment
• Fluctuations in consumer • First-mover advantages
spending, inflation, etc.
• Strong brand image and loyal
• Future labeling regulations customer base
• May no longer be able to market GMO • Difficult for competitors to come in
products as “natural” and profit
• Could decrease brand loyalty
• Well-trained and experienced
• Increased competition employees and management
• Expansion of conventional grocery • Commitment to employee satisfaction,
retailers into organic and natural product very low employee turnover rate
offerings • Highly experienced Real-Estate
sourcing team
• Any loss of key management could
adversely affect growth • Leader in healthy eating awareness
trajectory, company culture, and campaign
overall business strategy • As awareness and concerns grow for
healthier eating , revenue growth in the
segment will follow

3. Financial Analysis
• Stable Top-Line Growth
• 5 year CAGR of 11.28% vs. an industry average below 4%
• Second highest in revenue growth only to The Fresh Market (TFM)
• Increasing Operating Efficiency and Profitability
• Operating margins have steadily increased as expenses decline as a percent of sales
• Decreases in relocation, store closure, lease-termination, and pre-opening costs fueling the
increase in operating efficiency
• Steadily increasing EBITDA, EBIT, and Net Income margins
• ROA and ROE Doubled Over 5 Years – Still Needs Improvement
• ROE (11.45%) is below industry average (13.5%), and ROA (7.98%) is slightly below
their WACC (8%), suggesting a possible struggle to create shareholder wealth
• Increasing Liquidity
• Expanding of current asset base to fund future growth opportunities
• Cash & cash equivalents and available-for-sale securities
• Deleveraging Capital Structure
• Repayment of $490 million term loan resulting in increased debt capacity

4. Investment Summary
• Whole Foods Market, Inc.’s dedicated management team has stabilized an ambitious
business strategy, poising the company to increase expansion rates and market share
• Whole Food’s leading market share in the natural and organic foods segment, as well
as their growing brand recognition and customer loyalty has created a relatively
difficult environment for competitors to profit
• As Whole Foods continues to enhance supplier relationships and streamline their
operations, they will continue to foster increases operating efficiency and
profitability
• With the rapid increase in organic and natural foods as an overall percent of the retail
grocery industry, Whole Foods is in a position to capture the largest percent of that
sales growth
• After careful analysis, the merits and financial performance of Whole Foods
Market, Inc. appear to outweigh the corresponding risks, and thus would provide a
good investment opportunity.

5. • These slides cannot be used with out the written consent of
the uploader, William O’Hara.