Whole Foods is undervalued by 25% according to the valuation team. They recommend an acquisition of Whole Foods at $120 per share based on the following key value drivers:
1. Whole Foods has established a niche in the natural and organic foods industry and has cultivated strong brand loyalty.
2. Their financial analysis shows Whole Foods is well-positioned for continued growth, with projections of increasing sales revenue, expanding operating margins, and growing their store count to 500 locations by 2017.
3. Key value drivers include their ability to expand their customer base further, new stores performing strongly out of the gate, and opportunities to decrease costs of goods sold and occupancy expenses over time.
Fantasies in Frosting is a cupcake store which already has a reputable name in the wedding cake industry. They want to expand to the retail market and also opened the store to a new place in Moorhead area.
Fantasies in Frosting is a cupcake store which already has a reputable name in the wedding cake industry. They want to expand to the retail market and also opened the store to a new place in Moorhead area.
A marketing Case Study of Natureview Farm, an organic yogurt manufacturer. This analysis was performed by E. Santhosh Kumar, IIT Madras, during an internship with Prof. Sameer Mathur, IIM Lucknow.
The case study was given to us by our Professor in Business Policy and Strategy where we were to analyze Patagonia's achievements and successes as well as their downfalls, and give them new ways to expand their business. We took a look at they're corporate strategies, finances, and sales, and then provided feedback with data for where they should ultimately take their company which was described in the case analysis that was given to us.
Broad analisis of the biggest company in the world. It includes WalMart history, internal and external analysis and a focus on WalMart's internationalization with some suggestions for the future.
Rosewood Hotels and Resorts: Branding to increase Customer Profitability and ...Pallabh Bhura
This presentation is an in-depth marketing analysis of the Harvard Business Case "Rosewood Hotels and Resorts". It has been created by Pallabh Bhura of Jadavpur University during a marketing internship under Prof. Sameer Mathur, IIM Lucknow. It takes into account the various concepts of branding so as to increase Customer Profitability and Lifetime Value of Rosewood Hotels and Resorts.
Analysis of Wal-Mart using some Strategic Management tools:
*** Value Chain
*** Strategic Position And Action Evaluation (SPACE)
*** Resource & Capabilities analysis
***
Strategic Management project on Johnson & Johnson Shobhita Dayal
This presentation talks about the complete framework of the strategic planning of the Johnson & Johnson company. All the topics of strategic management course is been covered, in this ppt starting from SWOT, Strategic Map, External Factor Analysis, and all other major strategic tools.
Niche Marketing With Results - Measuring the Success of a PodcastChristopher Barrows
Podcasting has grown in popularity in leaps and bounds in 2016. 21% of Americans 12 and up listen to a podcast each month with regular listeners listening to an average 5 podcasts per week. Measuring success of your podcast, however, is another story.
How can you measure the value you're providing? Is your podcast delivering the results you need?
This Social Media Strategies Summit session looked at how ROI of podcasting beyond simply measuring downloads. It explored success across a variety of facets including influence marketing, social impressions and enhancing brand value.
A marketing Case Study of Natureview Farm, an organic yogurt manufacturer. This analysis was performed by E. Santhosh Kumar, IIT Madras, during an internship with Prof. Sameer Mathur, IIM Lucknow.
The case study was given to us by our Professor in Business Policy and Strategy where we were to analyze Patagonia's achievements and successes as well as their downfalls, and give them new ways to expand their business. We took a look at they're corporate strategies, finances, and sales, and then provided feedback with data for where they should ultimately take their company which was described in the case analysis that was given to us.
Broad analisis of the biggest company in the world. It includes WalMart history, internal and external analysis and a focus on WalMart's internationalization with some suggestions for the future.
Rosewood Hotels and Resorts: Branding to increase Customer Profitability and ...Pallabh Bhura
This presentation is an in-depth marketing analysis of the Harvard Business Case "Rosewood Hotels and Resorts". It has been created by Pallabh Bhura of Jadavpur University during a marketing internship under Prof. Sameer Mathur, IIM Lucknow. It takes into account the various concepts of branding so as to increase Customer Profitability and Lifetime Value of Rosewood Hotels and Resorts.
Analysis of Wal-Mart using some Strategic Management tools:
*** Value Chain
*** Strategic Position And Action Evaluation (SPACE)
*** Resource & Capabilities analysis
***
Strategic Management project on Johnson & Johnson Shobhita Dayal
This presentation talks about the complete framework of the strategic planning of the Johnson & Johnson company. All the topics of strategic management course is been covered, in this ppt starting from SWOT, Strategic Map, External Factor Analysis, and all other major strategic tools.
Niche Marketing With Results - Measuring the Success of a PodcastChristopher Barrows
Podcasting has grown in popularity in leaps and bounds in 2016. 21% of Americans 12 and up listen to a podcast each month with regular listeners listening to an average 5 podcasts per week. Measuring success of your podcast, however, is another story.
How can you measure the value you're providing? Is your podcast delivering the results you need?
This Social Media Strategies Summit session looked at how ROI of podcasting beyond simply measuring downloads. It explored success across a variety of facets including influence marketing, social impressions and enhancing brand value.
Analyze the present scenario of the firm with revenue generated and net profit earned with the aid of this content ready Organic Growth PowerPoint Presentation Slides. Present the firm's current markets share as compared to its competitors using the professionally designed incremental growth PPT slideshow. Provide information about your competitors that are currently existing in the market and how they are growing their business organically and inorganically. Take the assistance of the visually appealing revenue growth PowerPoint templates to assess business priorities that are crucial for growth such as market share, competitive advantage, quality improvement, sales growth, etc. Utilize the topic-specific business growth strategy PowerPoint complete deck to analyze possible future events such as expected units of sales, revenue generated and Capex, etc. You can also use the growth planning PPT graphics to focus on existing customers that can increase brand loyalty. Thus download this ready-to-use organic growth strategy PowerPoint presentation to maximize customer outreach. Convince them you have the expertise with our Organic Growth PowerPoint Presentation Slides. They help demonstrate your authority. https://bit.ly/2W4cXwR
Strategic management PowerPoint presentation slides provide reliable solutions for a systematic approach to business management. Following PowerPoint designs, involves the formulation and implementation of the major objectives and initiatives taken by an association's top management. Well researched topics with engaging graphics have been scripted here for an evaluation of the internal and external environments in which the organization works. Topics included here are, executive summary, mission vision values, management board organization chart, targets for the next business quarter, establish a value proposition, establish a value proposition, marketing plan objective, identifying new market channels, brand promotion strategies for engagement, focus on your strength, look to your competition, product feature comparison, annual, revenue financial summary, sales and performance dashboard and financial projections. These headings are scripted for a constant planning, monitoring, analysis and assessment for an organization to meet its goals and objectives. Further funding, hr services and operation plan deciding team initiates and strategies PPT slides are also included with chart sheets, timeline review, bar, and graphs PPT design for a comprehensive approach. Our Strategic Management Powerpoint Presentation Slides will grow upon you. You will definitely get fond of them.
Business Strategic Management PowerPoint Presentation SlidesSlideTeam
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Strategic management PowerPoint presentation slides provide reliable solutions for a systematic approach to business management. Following PowerPoint designs, involves the formulation and implementation of the major objectives and initiatives taken by an association's top management. Well researched topics with engaging graphics have been scripted here for an evaluation of the internal and external environments in which the organization works. Topics included here are, executive summary, mission vision values, management board organization chart, targets for the next business quarter, establish a value proposition, establish a value proposition, marketing plan objective, identifying new market channels, brand promotion strategies for engagement, focus on your strength, look to your competition, product feature comparison, annual, revenue financial summary, sales and performance dashboard and financial projections. These headings are scripted for a constant planning, monitoring, analysis and assessment for an organization to meet its goals and objectives. Further funding, hr services and operation plan deciding team initiates and strategies PPT slides are also included with chart sheets, timeline review, bar, and graphs PPT design for a comprehensive approach. Our Strategic Management Powerpoint Presentation Slides will grow upon you. You will definitely get fond of them. https://bit.ly/3CdTGfO
Reigniting APAC growth through improved traditional trade performance - Accen...Accenture ASEAN
How can CPGs significantly grow sales at lower cost in Asia-Pacific? By improving their coverage of traditional trade in emerging markets.
Report highlights:
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-- case studies
The sell-side report for Wm Morrison Supermarkets plcInna Sokolova
The report contains financial analysis of the latest financial results of WM Morrison Supermarkets plc, published in March 2015. Two valuation models, particularly the method of comparables and residual income model, are used to estimate stock intrinsic value. As a result, investment recommendation on this stock is provided.
What is the TDS Return Filing Due Date for FY 2024-25.pdfseoforlegalpillers
It is crucial for the taxpayers to understand about the TDS Return Filing Due Date, so that they can fulfill your TDS obligations efficiently. Taxpayers can avoid penalties by sticking to the deadlines and by accurate filing of TDS. Timely filing of TDS will make sure about the availability of tax credits. You can also seek the professional guidance of experts like Legal Pillers for timely filing of the TDS Return.
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Cracking the Workplace Discipline Code Main.pptxWorkforce Group
Cultivating and maintaining discipline within teams is a critical differentiator for successful organisations.
Forward-thinking leaders and business managers understand the impact that discipline has on organisational success. A disciplined workforce operates with clarity, focus, and a shared understanding of expectations, ultimately driving better results, optimising productivity, and facilitating seamless collaboration.
Although discipline is not a one-size-fits-all approach, it can help create a work environment that encourages personal growth and accountability rather than solely relying on punitive measures.
In this deck, you will learn the significance of workplace discipline for organisational success. You’ll also learn
• Four (4) workplace discipline methods you should consider
• The best and most practical approach to implementing workplace discipline.
• Three (3) key tips to maintain a disciplined workplace.
Taurus Zodiac Sign_ Personality Traits and Sign Dates.pptxmy Pandit
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3.0 Project 2_ Developing My Brand Identity Kit.pptxtanyjahb
A personal brand exploration presentation summarizes an individual's unique qualities and goals, covering strengths, values, passions, and target audience. It helps individuals understand what makes them stand out, their desired image, and how they aim to achieve it.
Premium MEAN Stack Development Solutions for Modern BusinessesSynapseIndia
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Business Valuation Principles for EntrepreneursBen Wann
This insightful presentation is designed to equip entrepreneurs with the essential knowledge and tools needed to accurately value their businesses. Understanding business valuation is crucial for making informed decisions, whether you're seeking investment, planning to sell, or simply want to gauge your company's worth.
RMD24 | Debunking the non-endemic revenue myth Marvin Vacquier Droop | First ...BBPMedia1
Marvin neemt je in deze presentatie mee in de voordelen van non-endemic advertising op retail media netwerken. Hij brengt ook de uitdagingen in beeld die de markt op dit moment heeft op het gebied van retail media voor niet-leveranciers.
Retail media wordt gezien als het nieuwe advertising-medium en ook mediabureaus richten massaal retail media-afdelingen op. Merken die niet in de betreffende winkel liggen staan ook nog niet in de rij om op de retail media netwerken te adverteren. Marvin belicht de uitdagingen die er zijn om echt aansluiting te vinden op die markt van non-endemic advertising.
Memorandum Of Association Constitution of Company.pptseri bangash
www.seribangash.com
A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
Contents of Memorandum of Association:
Name Clause: This clause states the name of the company, which should end with words like "Limited" or "Ltd." for a public limited company and "Private Limited" or "Pvt. Ltd." for a private limited company.
https://seribangash.com/article-of-association-is-legal-doc-of-company/
Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
Objective Clause: This clause delineates the main objectives for which the company is formed. It's important to define these objectives clearly, as the company cannot undertake activities beyond those mentioned in this clause.
www.seribangash.com
Liability Clause: It outlines the extent of liability of the company's members. In the case of companies limited by shares, the liability of members is limited to the amount unpaid on their shares. For companies limited by guarantee, members' liability is limited to the amount they undertake to contribute if the company is wound up.
https://seribangash.com/promotors-is-person-conceived-formation-company/
Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
Legal Requirement: The MOA is a legal requirement for the formation of a company. It must be filed with the Registrar of Companies during the incorporation process.
Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
https://seribangash.com/difference-public-and-private-company-law/
Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
While the MOA lays down the company's fundamental principles, it is not entirely immutable. It can be amended, but only under specific circumstances and in compliance with legal procedures. Amendments typically require shareholder
[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
LEARNING OBJECTIVES
1. Develop a comprehensive understanding of the fundamental principles and concepts that form the foundation of sustainability within corporate environments.
2. Explore the sustainability implementation model, focusing on effective measures and reporting strategies to track and communicate sustainability efforts.
3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
CONTENTS
1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
Explore our most comprehensive guide on lookback analysis at SafePaaS, covering access governance and how it can transform modern ERP audits. Browse now!
Remote sensing and monitoring are changing the mining industry for the better. These are providing innovative solutions to long-standing challenges. Those related to exploration, extraction, and overall environmental management by mining technology companies Odisha. These technologies make use of satellite imaging, aerial photography and sensors to collect data that might be inaccessible or from hazardous locations. With the use of this technology, mining operations are becoming increasingly efficient. Let us gain more insight into the key aspects associated with remote sensing and monitoring when it comes to mining.
Enterprise Excellence is Inclusive Excellence.pdfKaiNexus
Enterprise excellence and inclusive excellence are closely linked, and real-world challenges have shown that both are essential to the success of any organization. To achieve enterprise excellence, organizations must focus on improving their operations and processes while creating an inclusive environment that engages everyone. In this interactive session, the facilitator will highlight commonly established business practices and how they limit our ability to engage everyone every day. More importantly, though, participants will likely gain increased awareness of what we can do differently to maximize enterprise excellence through deliberate inclusion.
What is Enterprise Excellence?
Enterprise Excellence is a holistic approach that's aimed at achieving world-class performance across all aspects of the organization.
What might I learn?
A way to engage all in creating Inclusive Excellence. Lessons from the US military and their parallels to the story of Harry Potter. How belt systems and CI teams can destroy inclusive practices. How leadership language invites people to the party. There are three things leaders can do to engage everyone every day: maximizing psychological safety to create environments where folks learn, contribute, and challenge the status quo.
Who might benefit? Anyone and everyone leading folks from the shop floor to top floor.
Dr. William Harvey is a seasoned Operations Leader with extensive experience in chemical processing, manufacturing, and operations management. At Michelman, he currently oversees multiple sites, leading teams in strategic planning and coaching/practicing continuous improvement. William is set to start his eighth year of teaching at the University of Cincinnati where he teaches marketing, finance, and management. William holds various certifications in change management, quality, leadership, operational excellence, team building, and DiSC, among others.
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Accpac to QuickBooks Conversion Navigating the Transition with Online Account...PaulBryant58
This article provides a comprehensive guide on how to
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Discover the innovative and creative projects that highlight my journey throu...dylandmeas
Discover the innovative and creative projects that highlight my journey through Full Sail University. Below, you’ll find a collection of my work showcasing my skills and expertise in digital marketing, event planning, and media production.
Discover the innovative and creative projects that highlight my journey throu...
Whole Foods Valuation
1. Whole Foods Market Inc.
Group10
0
Dylan Tucker
Gerrit Thurston
Keith Durante
Robyn Hwang
Whitney Fletcher
Will Bergen
Valuation Project
2. 1
Whole Foods is undervalued by 25%; we
recommend an acquisition at $120 per share
• Expand in customer demand
• Cultivated strong brand loyalty
• Well-positioned, giving an operational advantage
_________________________________________________________________
Company Market Financial Analysis Value Drivers Valuation
4. Whole Foods has established a niche in
the natural and organic foods industry
Retail Grocery
Hypermarket
Walmart
Supermarket
Kroger, Safeway
Specialty Stores
Local stores
3Company Market Financial Analysis Value Drivers Valuation
_______________________________________________________
5. 4
Whole Foods has established a niche in
the natural and organic foods industry
Retail
Grocery
Hypermarket
Walmart
Supermarket
Specialty
Stores
Whole
Foods
Company Market Financial Analysis Value Drivers Valuation
_____________________________________________________
6. Mergers, acquisitions, and expansion have
allowed Whole Foods to grow and prosper over
time
SaferWay
1978
Allegro Coffee
(stock merger
complete), 1997
Acquired Wild Oats
Market, 2007Whole Foods
incorporated,
1980
Expansion into U.K
(purchase of Fresh
& Wild, 2004 and
2011
Launched
private
brand, 365
Everyday
Value, 1996
Top 100
company
(FORBES), 14th
consecutive
Year, 2012
Went public on
NASDAQ, 1992
5Company Market Financial Analysis Value Drivers Valuation
7. 6
Whole Foods has an established customer
base and aims to expand it in the future
High Income
Low Income
Health ConsciousNot Health Conscious
Kroger Safeway
Company Market Financial Analysis Value Drivers Valuation
_________________________________________________________
Walmart
Harris
Teete
r
8. 7
Whole Foods has an established customer
base and aims to expand it in the future
High Income
Low Income
Health ConsciousNot Health Conscious
Kroger Safeway
Company Market Financial Analysis Value Drivers Valuation
_________________________________________________________
Walmart
Harris
Teete
r
16. Whole Foods is positioned
to be very profitable in the future
Company Market Financial Analysis Value Drivers Valuation
_______________________________________________________
1. Strong Potential For Store Growth
2. Increase In Sales
3. Operating Margin Will Improve
15
2009 2010 2011 2012 2013 2014 2015 2016 2017
Sales Revenue 80.3 90.1 101.1 113.8 128.5 144.3 162.5 182.9 206.0
Operating
expense 77.4 85.6 95.6 107.2 120.5 135.5 152.5 171.6 193.1
Total Stores 284 299 311 334 364 397 431 465 500
Free Cash Flows 1.5 2.6 2.3 3.0 3.8 4.7 5.3 6.3 7.4
17. Store Growth Projections
Company Market Financial Analysis Value Drivers Valuation
0
100
200
300
400
500
600
2009 2010 2011 2012 2013 2014 2015 2016 2017
16
18. Company Market Financial Analysis Value Drivers Valuation
0
100
200
300
400
500
600
2009 2010 2011 2012 2013 2014 2015 2016 2017
Aggressive Growth Strategy, is it possible?
Favorable leases due to real estate market
Positioned well internally to fund expansion.
Many markets ready to accept new retailers.
Store Growth Projections
17
19. Whole Foods Is Building Capital
0
100
200
300
400
500
600
700
800
900
1000
2007 2008 2009 2010 2011
Debt Cash & Invesments
1. Cash/Investments 2. Stock Buy-Backs 3. Dividends 4. Accelerate Growth
Company Market Financial Analysis Value Drivers Valuation
Strategy:
____________________________________________________________
18
20. Revenue Growth is Strong
2009 2010 2011 2012 2013 2014 2015 2016 2017
Sales Revenue 80.3 90.1 101.1 113.8 128.5 144.3 162.5 182.9 206.0
Growth % .98% 12.1% 12.2% 14.0% 16.0% 13.0% 13.0% 13.0% 13.0%
Sales Revenue is comprised of:
1 Identical Store Sales Growth
2 New Store Sales
Increase in Transactions
Increase in Basket Size
Company Market Financial Analysis Value Drivers Valuation 19
25. New Stores Are Performing
Extremely Well
Opened three stores under their new design and EPV specs:
24Company Market Financial Analysis Value Drivers Valuation
26. New Stores Are Performing
Extremely Well
Opened three stores under their new design and EPV specs:
• Smaller in size (14% smaller) Low Occupancy Costs
Company Market Financial Analysis Value Drivers Valuation 25
27. New Stores Are Performing
Extremely Well
Opened three stores under their new design and EPV specs:
• Smaller in size (14% smaller) Low Occupancy Costs
• Experience Growth Team Staffed & Stocked well
Company Market Financial Analysis Value Drivers Valuation 26
28. New Stores Are Performing
Extremely Well
Opened three stores under their new design and EPV specs:
• Smaller in size (14% smaller) Low Occupancy Costs
• Experience Growth Team
• Strong Brand Name
Staffed & Stocked well
High Initial Sales
Company Market Financial Analysis Value Drivers Valuation 27
29. New Stores Are Performing
Extremely Well
Opened three stores under their new design and EPV specs:
• Smaller in size (14% smaller) Low Occupancy Costs
• Experience Growth Team
• Strong Brand Name
Staffed & Stocked well
High Initial Sales
14% higher sales overall
Company Market Financial Analysis Value Drivers Valuation 28
30. 2009 2010 2011 2012 2013 2014 2015 2016 2017
Sales Revenue 80.3 90.1 101.1 113.8 128.5 144.3 162.5 182.9 206.0
Growth % .98% 12.1% 12.2% 14.0% 16.0% 13.0% 13.0% 13.0% 13.0%
Sales Revenue is comprised of:
1 Identical Store Sales Growth
2 New Store Sales
Increase in Transactions
Increase in Basket Size
Average Growth:
4%
3%
7%
2012 2013
Total Stores 334 364
Opened stores 23 30
New Store
Growth:
7% 9%
Company Market Financial Analysis Value Drivers Valuation
Revenue Growth is Strong
29
31. 2009 2010 2011 2012 2013 2014 2015 2016 2017
Sales Revenue 80.3 90.1 101.1 113.8 128.5 144.3 162.5 182.9 206.0
Growth % .98% 12.1% 12.2% 14.0% 16.0% 13.0% 13.0% 13.0% 13.0%
Sales Revenue is comprised of:
1 Identical Store Sales Growth
2 New Store Sales
Increase in Transactions
Increase in Basket Size
Average Growth:
4%
3%
7%
2012 2013
Total Stores 334 364
Opened stores 23 30
New Store
Growth:
7% 9%
7% 7%
14% 16%Total Sales
Growth:
Company Market Financial Analysis Value Drivers Valuation
Revenue Growth is Strong
30
32. 2009 2010 2011 2012 2013 2014 2015 2016 2017
Sales Revenue 80.3 90.1 101.1 113.8 128.5 144.3 162.5 182.9 206.0
Growth % .98% 12.1% 12.2% 14.0% 16.0% 13.0% 13.0% 13.0% 13.0%
Sales Revenue is comprised of:
1 Identical Store Sales Growth
2 New Store Sales
Increase in Transactions
Increase in Basket Size
Average Growth:
4%
3%
7%
2012 2013
Total Stores 334 364
Opened stores 23 30
New Store
Growth:
7% 9%
7% 7%
14% 16%Total Sales
Growth:
Company Market Financial Analysis Value Drivers Valuation
Revenue Growth is Strong
31
33. 2009 2010 2011 2012 2013 2014 2015 2016 2017
Sales Revenue 80.3 90.1 101.1 113.8 128.5 144.3 162.5 182.9 206.0
Growth % .98% 12.1% 12.2% 14.0% 16.0% 13.0% 13.0% 13.0% 13.0%
Sales Revenue is comprised of:
1 Identical Store Sales Growth
2 New Store Sales
Increase in Transactions
Increase in Basket Size
Average Growth:
4%
3%
7%
2012 2013
Total Stores 334 364
Opened stores 23 30
New Store
Growth:
7% 9%
7% 7%
14% 16%Total Sales
Growth:
Company Market Financial Analysis Value Drivers Valuation
Revenue Growth is Strong
32
34. Company Market Financial Analysis Value Drivers Valuation
92.00%
92.50%
93.00%
93.50%
94.00%
94.50%
95.00%
95.50%
96.00%
96.50%
97.00%
2009 2010 2011 2012 2013 2014 2015 2016 2017
Operating expense as a
percentage of revenue
3. Operating margin will improve____________________________________________________________
33
35. Company Market Financial Analysis Value Drivers Valuation
92.00%
92.50%
93.00%
93.50%
94.00%
94.50%
95.00%
95.50%
96.00%
96.50%
97.00%
2009 2010 2011 2012 2013 2014 2015 2016 2017
Operating expense as a
percentage of revenue
Decrease in
COGS
Decrease in
occupancy
costs
3. Operating margin will improve____________________________________________________________
34
36. Company Market Financial Analysis Value Drivers Valuation
Decrease in COGS
3. Operating margin will improve____________________________________________________________
35
37. Company Market Financial Analysis Value Drivers Valuation
Decrease in COGS
Data management
technology
3. Operating margin will improve____________________________________________________________
36
38. Company Market Financial Analysis Value Drivers Valuation
Decrease in COGS
Data management
technology
Relationship with
suppliers
3. Operating margin will improve____________________________________________________________
37
39. Company Market Financial Analysis Value Drivers Valuation
Decrease in
occupancy costs
3. Operating margin will improve____________________________________________________________
38
40. Company Market Financial Analysis Value Drivers Valuation
Decrease in
occupancy costs
Less expensive
leases on new
stores
16% increase
in profits per
sq. ft.
3. Operating margin will improve____________________________________________________________
39
41. Company Market Financial Analysis Value Drivers Valuation
3. Operating margin will improve
Decrease in
occupancy costs
Less expensive
leases on new
stores
Renegotiating
current leases
16% increase
in profits per
sq. ft.
____________________________________________________________
40
42. Whole Foods is positioned
to be very profitable in the future
Company Market Financial Analysis Value Drivers Valuation
______________________________________________________
0
50
100
150
200
250
2009 2010 2011 2012 2013 2014 2015 2016 2017
Sales revenue
0.000%
2.000%
4.000%
6.000%
8.000%
2009 2010 2011 2012 2013 2014 2015 2016 2017
Operating margin
0
200
400
600
2009 2010 2011 2012 2013 2014 2015 2016 2017
Number of stores
0
1
2
3
4
5
6
7
8
2009 2010 2011 2012 2013 2014 2015 2016 2017
Free cash flows
41
44. 43Company Market Financial Analysis Value Drivers Valuation
Health conscious living is here to stay
$25,000
$30,000
$35,000
$40,000
2000
2003
2006
2009
2012
2015
Per Capita Disposable Income
Per Capita
Disposable
Income
Conventional
Retail Grocers
Organic Industry
Growth
•Low-cost and
unhealthy
•Older generation
recognizing health
issues
•Younger generation
feels little
connection to retail
grocers
•U.S. disposable
Income Increase
•Baby Boomers are
prioritizing health
•83% organic
purchases for
health reasons
•Millennials
increasing spending
power
•Farmers
markets 17%
growth
45. 44
Whole Foods has cultivated positive image
that connects with their market segment
Company Market Financial Analysis Value Drivers Valuation
__________________________________________________________
Brand Awareness Drivers Program / Initiative
•Company aims to increase
Credibility
•Prioritize social and
environmental compassion
•Ethical codes / quality
standards foster positive
public perception
•Committed to providing a
unique and fresh
experience
•Whole Planet Initiative
•Whole Kids Foundation
•Whole Trade Guarantee
•Shopping at Whole Foods
is part of the “organic”
experience
46. 45
Whole Foods’ is advantageously situated
in regards to its suppliers
• Strong relationships with suppliers
•United Natural Foods Incorporated - 31% of whole foods supplies
•Whole Foods has developed a “buying backwards” supply strategy
•Allegro, Bread of Life, Fresh & Wild
•Effective distribution infrastructure
•Whole Foods has increased relationships with local suppliers
•Project: Local
Company Market Financial Analysis Value Drivers Valuation
_____________________________________________
47. 46
Risks to consider____________________________
Risks Response
New entrants Brand image and market
experience
Larger competitors’ pressure on
suppliers
Good relationship with suppliers
Low switching costs of consumers Brand image and market
experience
Sensitivity to government
regulation and environmental
factors
Knowledgeable and responsive
Importance of brand image Good understanding and history
Company Market Financial Analysis Value Drivers Valuation
49. Scenario analysis suggests stock price value
could fall between $82-206 per share
Pessimistic Base Optimistic
Revenue Growth Rate 9% 13.1% 17 %
Weighted Average Cost of
Capital
6% 5.2% 4.4%
Perpetuity Growth Rate 1.4% 1.8% 2.3%
Equity Value Per Share $82.18 $120.39 $206.10
Current Share Price $95.76
_________________________________________
__________________________________________________
__________________________________________________
Company Market Financial Analysis Value Drivers Valuation 48
50. 49
Whole Foods is undervalued by 25%; we
recommend an acquisition at $120 per share
• Expand in customer demand
• Cultivated strong brand loyalty
• Well-positioned, giving an operational advantage
_________________________________________________________________
Company Market Financial Analysis Value Drivers Valuation
52. Appendix - History
– completed a stock merger with allegro coffee in 1997
– opened in Manhattan in 2001 with a 30,000 square
foot store
– 2002-2011 expanded into the UK and Canada
– launched a premium body care line in 2008
– what started as a small natural foods store with an
initial investment of $45,000 has become a
blossoming company, who placed in the top 100 of
Forbes magazine top companies for its 14th
consecutive year
51
53. Appendix-Matrix
• Whole Foods has an established consumer
base already, as depicted by the matrix above
• successfully targeted Health Conscious
consumers with high income and a high
willingness to pay
• they have used this market share to their
advantage, as it has become an extremely
profitable segment to target
52
54. Appendix-Matrix
• in the future, they hope to target lower income families
and individuals who are still health conscious (organic and
natural food-sensitive purchasers)
• they have moved towards this with various initiatives, most
prominently their Whole Deal Program, which seeks
– value guide available in all stores featuring coupons and budget
conscious recipes with money saving shopping and cooking tips
• issue deals which highlight everyday value pricing on high quality
products
– farm to fork traceability allows customers to make more
informed decisions
• Whole Foods targets its locations specifically by an area’s
demographics
– company targets locations specifically where 40
53
55. Whole Foods has focused on providing
organic products at lower prices
Whole Foods
Market
365
Everyday
Value
(through various
suppliers)
Whole Foods
Market
(private label)
Control brands
(e.g. Columbia River
Organics)
Subsidiaries
(e.g. Allegro Coffee
Co.)
Products
(perishables, household
supplies, body care, etc.)
____________________________________________________________
11% of Whole Foods’
revenue in 2010 and 2011
Private label products in
the U.S. experiencing
increasing popularity
54
59. European Market
Decrease in GM Food Production
2010: Over 148m hectares of GM crops planted in 29 countries
-America largest with 66.8 hectares (2.8 more than 2009)
-European countries subject to severe restrictions for growing GM
crops
• With a proper
business
model, Europ
ean market
shows
potential for
large profits.
• Higher
Demand for
quality
food/greater
restrictions
58
Hypermarket: All-in-one stores selling grocery and household products, appliances, etc.Supermarket: Mainly food and beverage productsSpecialty stores: Focus on select few products
Whole Foods has combined supermarket’s convenience with high-quality products from specialty stores. This is a unique niche that Whole Foods leads.
Talk about how its established a market segment already – pretty self explanatory…maybe work on visual
Talk about how its established a market segment already – pretty self explanatory…maybe work on visual
Whole Foods saw positive growth between 2005-2008, much of their can be attributed to them joining the S&P 500 in 2005. Further increase between 2007-2008 can be attributed to an increase in stores sales of 4%.
2. However, when examining the Natural and Organic Food Industry, it grew by an average of 9.5% between 2010-2011. The future projections for growth of this industry are 11.5% which bods well for whole foods due to its continual growth in a thriving portion of the market.
3. As the Organic Food Industry continues to grow, Whole Foods has benefitted due to its favorable portion within the market. Growth of 12% for the past two years is only expected to continue to grow, our estimates are that for the next two years Whole Foods revenue growth will be 15%.
When comparing Whole Foods to competitors within the grocery retail industry, the gross profit margin for the past 4 years has continued to grow for Whole Foods while major Retail Grocery leaders have been decline. Due to this information as well as the trends for both the Retail Grocery Industry and the Organic Industry, all major companies have began to launch their own product lines.Safeway, for example, announced that their O Organic line generated $100 million dollars in sales revenue between the fourth quarter of 2010 and the beginning of 2011.
John Mackey’s prediction. Recently assumed the slightly lower profile position of “CO” CEO, in light of his attention grabbing behavior. In 2007, he posted anonymously on financial blogs, attacking Whole’s Food’s Acquisition target Wild Oats, made public during the anti-trust suit later that year. Whole world moving towards healthy eating.
John Mackey’s prediction. Recently assumed the slightly lower profile position of “CO” CEO, in light of his attention grabbing behavior. In 2007, he posted anonymously on financial blogs, attacking Whole’s Food’s Acquisition target Wild Oats, made public during the anti-trust suit later that year. Whole world moving towards healthy eating.
Gone from nearly 1 billion in debt, to 850 million in Cash & Equivalents since 2007.{Whole Foods Market, Not Whole Foods Incorporated.}
Within operating expense:Direct store (salaries and benefits, supplies, marketing, depreciation) General and administrative (salaries and benefits, occupancy, corporate/regional admin costs) Pre-opening (rent, construction, hiring and training) Relocation, store closure, lease termination costs (Wild Oats – had 17/20 stores leased but unused as of Sept 2011)
Within operating expense:Direct store (salaries and benefits, supplies, marketing, depreciation) General and administrative (salaries and benefits, occupancy, corporate/regional admin costs) Pre-opening (rent, construction, hiring and training) Relocation, store closure, lease termination costs (Wild Oats – had 17/20 stores leased but unused as of Sept 2011)
Data management technology – optimization of distribution and inventoryfaster, more efficient storing and shippingReduction of waste
Data management technology – optimization of distribution and inventoryfaster, more efficient storing and shippingReduction of waste
Data management technology – optimization of distribution and inventoryfaster, more efficient storing and shippingReduction of waste
Data management technology – optimization of distribution and inventoryfaster, more efficient storing and shippingReduction of waste
Data management technology – optimization of distribution and inventoryfaster, more efficient storing and shippingReduction of waste
Data management technology – optimization of distribution and inventoryfaster, more efficient storing and shippingReduction of waste
Store expansion as the key strategy is working well, and existing stores performance is solid.Revenue growth is strong, partly as a result of a lower operating margin, which comes from improved efficiency while maintaining quality.On the whole, Whole Foods is positioned to be profitable in the near future, and as Will and Whitney will explain in more detail, this short term performance should continue into the long term as well.
83% of consumers buy organic food for health reasonsFarmer’s markets have grown 17% from 2010-2011-Current dietary trends in the United states indicates a socio-economic shift towards the consumption of organic products that will increase demand for Whole Foods.-Per capita disposable income is often viewed as a pivotal indicator in gauging the state of a countries economy. As the U.S. continues to crawl its way out of the after effects of the recession people are beginning to increase the amount of disposable income they possess. Since organic food can be considered expensive, and somewhat of a luxury, this influx of disposable cash should increase demand for organic products. -Baby boomers will eventually represent the largest senior population in the history of the United States. As they continue to age their interest in healthy eating will continue to grow. One statistic that is indicative of this is that currently 83% of consumers assert that they purchase organic foods for health reasons.-As the Millennial generation increases in age, and spending power, it is certain to drive up demand for organic foods. The Millennial generation has grown up around the “fad” of organic culture and has chosen to embrace it. As Millennials make their way into the working world and increase their spending power they will contribute to the increased demand for organic products.
Intangible initiatives that increase whole foods value within their target margetInitiatives such as “Whole Planet” have increased Whole Foods credibility with their market segment. Whole Foods customers are globally minded, progressive, individuals. The “Whole Planet” initiative seeks to alleviate poverty through microfinancing projects in communities around the world that supply Whole Foods with products. Whole Foods also connects with it’s customers by exuding a sense of social and environmental responsibility, this comes in the form of the Whole Trade guarantee. The Whole Trade Guarantee is essentially Whole Food’s stamp of approval that asserts their products are up to the highest standards of quality in the eyes of the company, its suppliers, shareholders, customers, and the environment. Adoption of the Whole Foods Whole Trade guarantee has allowed Whole Foods to foster a positive image among anyone associated with the company
, Extended through 2020, purchase prices are extremely competitiveWhole Foods has been able to maintain a strong relationship with its suppliers. In particular Whole Foods has maintained it’s relationship with the organic food providing giant the United Natural Food Company.Whole Foods has been attempting to implement a system in which it will be able to “buy backwards” in regards to supply. This system allows Whole Foods to utilize it’s self produced, brand name products, (365 Everyday) Utilizing this strategy will allow Whole Foods to decrease its dependence upon suppliers. Have also made a concerted attempt to buy smaller suppliers in order to command their supply lines. Allegro Coffee. Whole Foods has maintained, and increased, its relationships with local suppliers in order to maintain the public perception that Whole Foods is a company that supports naturally produced “home grown” products. Initiatives such as the Project: Local program in the midwest have allowed Whole Foods to reinforce it’s image as a brand name that supports local farmers and industry.xs111
Whole Foods focuses on high quality organic and natural products, but there is a perception that they are expensive. Also, studies have shown that consumers are more and more likely to buy private label products, aka store brand products. So Whole Foods has focused on ways to reduce their prices for a portion of their products. Here you see differently named, differently priced brands that end up on Whole Foods’ shelves. 365 Everyday Value is still certified organic, but it is a less expensive option because it is a generic brand that is sourced through Whole Foods’ suppliers. They also have a Whole Foods Market private label brand, which is supplied by Whole Foods-owned facilities. On the right, there are control brands and subsidiaries that Whole Foods owns and controls, but may offer more expensive products. The bottom line: Whole Foods wants to appeal to a wider consumer base who are willing to pay different prices.