Safeway Earnings Are a Mixed Bag

The video above is from Thursday's MarketFoolery podcast, featuring host Chris Hill and analysts Joe Magyer and Jason Moser. In this segment, the focus is on Safeway's (NYSE: SWY  ) quarterly profits, which were released early yesterday. Earnings came in lower than the previous quarter, with shares down 3.5% as a result. While Safeway has paid a steady dividend, the guys expect that to end in a couple of years. Unlike Whole Foods (Nasdaq: WFM  ) , Safeway has been watching its gross margins shrink, which spells long-term trouble for the company.

In terms of Whole Foods, it's hard to believe that a grocery store could book investors more than 30 times their initial investment, but that's just what the company has done for those who saw the organic trend coming some 20 years ago. However, today people are wondering if Whole Foods' growth is sustainable, and whether the valuation is justified. That's why Fool.com analyst and WFM expert Jim Mueller has authored a premium research report that lays out exactly how Whole Foods is able to command such incredible industry-topping margins, and why the company's growth is actually still in its early stages, as well as the key opportunities and threats facing the store's future. As an added bonus, Jim will keep you up-to-date with a full year of analysis and guidance as news develops, so don't miss out -- Click here now to claim your copy today.

Chris Hill owns shares of Amazon.com. Jason Moser owns shares of Amazon.com. Joe Magyer owns shares of Amazon.com and Whole Foods Market. The Motley Fool owns shares of Amazon.com and Whole Foods Market. Motley Fool newsletter services recommend Amazon.com and Whole Foods Market. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 2056050, ~/Articles/ArticleHandler.aspx, 4/20/2014 10:36:17 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement