In this episode of Industry Focus: Consumer Goods, Emily Flippen and Asit Sharma put focus on Virgin Galactic (NYSE:SPCE), Domino's (NYSE:DPZ), Beyond Meat (NASDAQ:BYND), and Kroger (NYSE:KR). They chat about what's driving the growth in Virgin Galactic and look at the pros and cons of getting the stock now. They also discuss Domino's fortressing and comps strategy, as well as the plant-based food industry and some recent wins in the sector. Finally, an earnings preview of Kroger and Berkshire Hathaway's (NYSE:BRK.A) (NYSE:BRK.B) recent interest in the stock.
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This video was recorded on Feb. 25, 2020.
Emily Flippen: Welcome to Industry Focus. Today is Tuesday, Feb. 25th, and today we're talking Consumer Goods. I'm your host, Emily Flippen, joined by Motley Fool contributor Asit Sharma. Asit, thank you so much for joining.
Asit Sharma: Emily, thank you so much for asking. [laughs]
Flippen: [laughs] It's always fun to talk with you and today is especially fun. We have some hot trends, some hot stocks and some hot pizza maybe [laughs] running there a little bit.
Sharma: How you string those together, that's pretty impressive.
Flippen: Yeah, they all have one thing in common, that's the word "hot," I just made that up on the fly there. But let's start with the hot trends. And I have to say, it's been a hot stock too, so I shouldn't just say, it's a hot trend, but it's been on my radar since it was trading at $9 a share, and I maybe should've bought back then, and that's Virgin Galactic.
Sharma: Yeah. I think so many of us are in the same boat. This is a stock that appeals to you conceptually and also when you look at what's happened in the stock price, there's a visceral, "Dang! I should be in that, I should have been in that, I should run and avoid it." But let me say a couple of things about Virgin Galactic. Of course, this is run by Richard Branson, the serial billionaire entrepreneur and this is a company that is going to take people on commercial space flights as early as this year. I don't know if this will actually happen this year, but they will be ready for commercial space flight at some point in 2020. And Branson has this great track record of having light bulbs go off in his head and then turning those into multi-billion-dollar businesses.
He sold Virgin America, which was an airline, which he started with one plane after getting aggravated having to wait for a flight. He sold that for $2.6 billion to Alaska Airlines in December of 2016. So, there would've been a lot of interest anyway in his entering this space, but the stock got a boost in December when Morgan Stanley wrote a research note saying that the stock could have a long-term price target of $60 per share. And since then, fear of missing out, I think, has been rocket fuel that's boosted this stock, it's pulled in speculators, momentum day traders and some smart institutional money, given Branson's track record and his know-how.
Just quickly, Emily, what are your thoughts on the stock and then maybe I'll jump back in with some numbers?
Flippen: Yeah, I actually, I'm kind of a fan of Virgin Galactic. And I can see how it's a stock that plays really well with, I guess, you could say speculation day traders, a lot of Robinhood investors are invested in Virgin Galactic, because -- you know, it doesn't really have a business right now, but when you think about the potential for a business, it's there in the same way that a lot of people made the argument in the case of Tesla, although the argument for Tesla was maybe a little more clear at the time.
I will say this, I did take a poll here at The Fool, when I was first really interested in this company, and I kind of jokingly asked the Rule Breakers team here -- The Motley Fool Rule Breakers team -- for them to give a thumbs up or a thumbs down if in my lifetime -- so, I'm 25 years old -- if in my lifetime, a person who is earning around $130,000 a year, so a high earner but not completely ridiculously unreasonable, someone earning the inflation equivalent of $130,000 a year, would be able to take a vacation to space, if that was something that would be feasible? And every single person in that room gave a thumbs up.
So, that is what intrigued me, is the idea that in the not-too-far-distant future, there could be the potential for space tourism. Now, how big of a market that is, whether Virgin Galactic is the winner, it's TBD, but I think that's kind of where my head's at with the company right now.
Sharma: Well, those are some pretty smart people, so that's a persuasive show of thumbs up. Here's what excites me about the company. The valuation that Morgan Stanley came out with is based on a potential total addressable market of $800 billion for hypersonic travel. So, phase one is this commercial space tourism that we're talking about, but there's also a phase two in which hypersonic point-to-point travel comes into play and that's the case of a spaceship going up to earth, but not landing back at its origin point, but basically going to another point on the globe. And this hypersonic travel could disrupt the commercial airline industry. So, given that $800 billion a year of market opportunity, as you mentioned, Emily, with only a few players in the market, you can see, sort of, the potential stretch-out over years.
Now, whether that means that the stock is a good buy just now, I don't know. At today's earnings which may have aired by the time this show airs or which will have been released, there hopefully will be some kind of projections that Virgin Galactic can share some milestone data, possibly some revenue projections. As of the last report, the company had collected about $80 million in customer deposits and about $120 million of potential revenue that it derives from those deposits as a projection. We also know that the company merged with its, sort of, predecessor investor after the third quarter ended, so they have another $430 million to play with, which gives them about $1.1 billion on their balance sheet. So, they're well-funded.
But what you want to look for today is, sort of, that larger picture, a narrative that's laid out. It's a relatively new company to come to market, we don't have a lot of on-the-ground data to support Morgan Stanley's, sort of, dreamed up scenario which is based on their analysis of the market. And, of course, their data and analysis are always pretty sharp. But what we want out of today's report is just to get a sense of something that we can use to value the company in the future, since right now they have very little earnings to speak of and no sales yet.
Flippen: Yeah, it's all very theoretical, even the numbers that Morgan Stanley, I'm sure, is basing their valuation on. I don't imagine that there's anything that can be said today that would really change that scenario for them. There's really no business operations yet. I love saying "The reported earnings," because the earnings there doesn't exist, the business barely exists, but people are definitely buying into the opportunity. And I don't want to downplay just how strong the buy-in has been. We've had two down days in the market thus far today; and yesterday being a big one. And, yeah, Virgin Galactic has -- granted, I mean, I realize that today they report earnings, so there's a little bit of momentum going into the earnings season for them, but, I mean, they've had up days on, both, today and yesterday. So, it will be really fun to see what management says today. I can't imagine it will move the needle at all for me. I think we could be having the same, exact conversation tomorrow and it will be just as relevant tomorrow as it is right now.
Sharma: Absolutely. Maybe we should just revisit this in a few months or next year and see how bad we feel for not buying into the stock. But that's for a later date. [laughs]
Flippen: [laughs] Well, many small retail investors are getting their first exposure to the stock market through buying Virgin Galactic; at least that is what the Robinhood trading data would have us believe. And for many of our listeners, taking that first step to investing is actually really the hardest part. And taking that first step to getting your financial future in order is really challenging, but it's the most important thing you can do to help kick-start that financial future.
So, to get you started with investing, we actually put together a starting kit here at The Motley Fool, it's a free 15-page report that includes just the very basic. So, really things like how to open up a brokerage account, what to look for in a good business and five stock ideas to get you started. It's a valuable read, even for people who are used to getting their financial content in audio over podcast maybe. So, to check it out, you can go to fool.com/starterkit. So, I definitely recommend any listeners, who are looking to take the first step, to check out there.
And with that in mind, now let's move on to the other hot commodity, that's hot pizza. My favorite pizza stock reported earnings last week. So, Asit, what can you tell us about Domino's?
Sharma: Domino's is not just hot, it's piping hot [laughs] as of last week. The cheese is spreading thin as you pull it up out of the box.
Flippen: [laughs] I appreciate the visuals.
Sharma: [laughs] What can we say, Domino's has been an excellent long-term holding, many of our Fool listeners hold it. It's one of those quiet consumer goods companies that just does a phenomenal job of building earnings and cash flow over time. Now, over the last 18 months, some of that momentum stalled as the company encountered a lot of competition from these new aggregators -- like, Uber Eats and GrubHub and DoorDash -- and suddenly found itself struggling to grow its same-store sales, its comparable sales. So, last week it reported surprisingly strong comparable sales -- we call them comps -- of 3.4%. So, the comparable sales grew 3.4% over the prior year. And the company also reaffirmed its long-term growth targets. So, you had a single session where the stock just soared 26%.
Investors are really excited because they're seeing that maybe Domino's can actually grow comps while they implement their fortressing strategy. Fortressing is this initiative to build out many Domino's stores in a single area and make a metropolitan area or a neighborhood dense with Domino's stores, so that any person who wants to have a carryout or delivery is proximal to a Domino's somewhere. Now, that should have a depressing effect on comps, because the more stores you build, they're all competing for the same market share, but it's good for overall growth because you have more stores and hopefully, you're grabbing competition from other companies. So, that's what investors are really excited about.
I wrote a brief article saying -- I don't know, that's one data point, it's one quarter strong comps, over time fortressing and comps, they work against each other, although the strategy is pretty good. What I am more excited about and wanted to point out is, there's, sort of, an unsung hero in Domino's earnings that's getting stronger every quarter and this is supply chain sales. So, Emily, you already know the answer, [laughs] but if you didn't already know the answer, what does that sound like: Supply chain sales?
Flippen: It's funny, because until we're having this conversation, I don't think I would really know the answer, but I recently did a research report over Dunkin'. And Dunkin' makes a good amount of their money -- or Dunkin' Brands, I should say, owner of formerly Dunkin' Donuts -- but they make a good amount of money from what they also call supply chain sales. So, I do have an existing knowledge, which I presume would be the sale for Dunkin', is a sale of ice cream to international Baskin-Robbins. So, I would presume it would be something similar to the sale of pizza to maybe international locations for Domino's.
Sharma: Absolutely. And that was, actually, my first exposure to this concept, because Dunkin' Brands, sort of, went in on this revenue stream to support or complement, really, the franchise and royalty fees that it receives from franchisees. It's a phenomenal concept if you're efficient at it, and Domino's is pretty efficient at it. This is now its second-fastest revenue stream outside of its U.S. franchise fees and royalty income. It's growing at an 8.5% annual growth rate, which is pretty fast in the food industry.
It also happens to be the biggest component of Domino's overall revenue. It's about 60% of total revenue last year. That translated into sales of $2.1 billion out of $3.6 billion in total Domino's sales. And it throws off a surprisingly decent margin of 12.5%. So, Domino's takes home $0.125 out of every $1 worth of supplies that the company sells to its franchisees.
Why this is so important and why I love this concept? Domino's is out there trying to fortress its restaurants and build a bunch of units. It's also hoping that over time it can improve comps, as we discussed. If it can improve comps, if every store is selling more, that's good for supply chain sales. If comps stay flat, but they're building more units, that's good for supply chain sales. If you got them both at the same time, if you can do both -- as investors were so excited about last week -- that is great for supply chain sales. So, it's like this third gear that's built in. If the overall strategy is working, this quite big part of Domino's revenue and operating profit is just going to get bigger and stronger. So, I thought that was something investors maybe want to look at, if you still have any doubts about this company as a persuasive long-term investment.
Flippen: Yeah. And I agree. The fortressing strategy is unique to Domino's, but one thing that I will say -- and I don't want to downplay the importance of this aspect of their business -- through expansion, they're not just trying to build more stores, but they also make a concerted effort into improving the Domino's experience. So, obviously, a while back they changed their formula, the whole marketing campaign, but more recently they've reinvented themselves from a technological standpoint. So, the Domino's app has gotten a lot of updates to make ordering at Domino's Pizza that much easier. And that's been vital for them through this fortressing strategy, because they don't use third-party providers -- so, GrubHub, DoorDash, Uber Eats, those sort of things -- Domino's does not deal with third-party deliverers, they say, "You're either ordering on Domino's.com, the Domino's app or calling, that's how you're getting Domino's, we're not going to give up some of our margin to use a third-party provider." So how do you feel about that aspect of the fortressing strategy?
Sharma: This is anecdotal, so you should never rely on anecdotal advice, but I was very eager -- just as someone who watches consumer goods stocks -- to download the app when they first put it out. This is a few years ago now. And I've seen those improvements. It's a fast experience. And I think that's facilitated us -- as a family we had three high-schoolers in the house, we have just one now -- ordering more Domino's than we might have; it was more top-of-mind. And they do a good job of incentivizing orders through their program. So, I think that's a really great addition, the whole technology piece that they put in, which is proprietary, and also helps the customer with visibility into where the order is in the process. Which we've seen other restaurant entities now try to replicate that experience, to seeing visually, "Oh, it's in the oven," "it's out of the oven, I can hop in the car and pick it up."
Domino's likes to emphasize carryout, as you say, Emily, because they don't want to take that third-party hit and they're also, I think, slightly more profitable when the customer comes and picks up the pizza. So, they love carryout and the CEO talked a little bit about the importance of carryout going forward in this last conference call.
So, I agree with you. I think that the technology piece shouldn't be overlooked, it's integral to this fortressing strategy.
Flippen: Yeah, I fall into this bad habit of -- when I analyze companies, especially consumer goods companies, especially food companies -- I always do a lot of "market research," which involves me eating a lot of pizza, when I was looking at Panera, a long time ago, involves me eating a lot of lunch at Panera. [laughs] Domino's is a black hole for me, but I will say I had the same experience downloading and using the Domino's app. They do send me notifications way too often to remind me that I haven't had pizza this week and that I should definitely be eating more pizza. [laughs]
And I don't want to harp on it too much, I want to add the caveat though, that it's a competitive space, especially because so much of pizza is delivered, and carryout is an important aspect, but GrubHub, DoorDash and Uber Eats, the food delivery services, have changed the game in terms of what we can get delivered to our homes or our apartments, our college dorm rooms, whatever it may be. It used to be just Chinese food or just pizza, now you can get anything: sushi, Thai, burgers. Whatever you want can be yours in a matter of 30, 45 minutes. So, it's definitely a competitive area but Domino's is making good inroads, it seems.
Onto another big trend and food consumption, and it might not be as delicious as pizza but it's certainly as hot as Virgin Galactic, and we have some previews for the upcoming earnings of Beyond Meat on Thursday.
Sharma: Beyond Meat. Again, it's one of these companies that just has so much interest from retail investors from institutional investors, just everyone has some sort of interest in this, because it's got that big total addressable market, it is disrupting the field along with Impossible Foods and a few other companies.
This company will report on Thursday, it was one of the most successful IPOs of 2019, but it's also been a real roller coaster of a stock. If you bought the stock, lucky enough to get in at the IPO, you'd at one time seen your returns hit nine-times. The May IPO pricing in 2019 of $25, and last I looked -- this was yesterday, it may be well off this mark today -- but yesterday it was trading at a mere $112 per share.
So, I don't want to go into all the minutiae of what to look for in the earnings release, but I want to look at something big picture today on Beyond. I think that the competition that Beyond is facing, has this one very visible aspect. And competition may start to put some compression on Beyond's sales growth. So, everyone is following this, sort of, battle to get into the big quick service restaurants, be it McDonald's, Burger King, Dunkin' Donuts. And every day it seems we have an announcement that Beyond scored one big chain and Impossible Foods has scored another.
But I'm a little concerned about, sort of, these unseen institutions, manufacturers. I call them big food. These are companies like, the food giant Cargill, which announced yesterday that it was going to launch its own plant-based patties and burgers for sale to grocery stores, restaurants and food service institutions in April of 2020. And this follows similar steps by well-resourced competitors like Tyson Foods.
If you follow the stock, you know that the company has been growing its revenue at a rate of 250% year-over-year, and inevitably that's got to slow down. I am looking when it reports to see just how much sales are projected to slow into this coming year, that is, the year we're in now, 2020, and to see what that outlook will look like and where the company will stand, whatever metric you use to value it. It's only had one quarter of profitability, so it's sort of hard to look at a forward price-to-earnings ratio, that would be an astronomical 315-times. It's selling at a price-to-sales ratio of 25-times; which is like a tech stock right now. What are your thoughts, Emily?
Flippen: Yeah, when you say the price-to-sale ratio of 25 times on a tech company, I mean, tech companies have margins that are justifying the reasons why they're being valued at such high levels. A lot of their revenue flows to the bottom-line once they reach scale. I think the problem with Beyond Meat is not only that it's a challenging business in terms of margin, but competition will keep their margins relatively thin for the foreseeable future.
That being said, I have a bad history in my investing history of devaluing the prominence of brands. And I did it with companies, like Yeti, like Peloton, I don't want to downplay the importance of having the Beyond Meat name behind it. They're definitely the best-known meat alternative product on the market today and if they're able to continue to get deals with fast-casual chains, fast food restaurants and drive consumer consumption, then I think it can succeed. At today's levels, the way it's being valued right now, I don't know. But let me put it this way, if I could put out a short on the company right now, I don't think I would take out that opportunity. I think there are more clear companies to short in the market today. So, Beyond Meat, I've been conflicted about it in the past and I think I'm still conflicted today.
Sharma: Yes. If you've got a very, very, very longtime horizon and you're also spreading your bets a bit, it sort of makes sense even at this level to have a small investment. This is another company that you just need more seasoning, so the quarter that was last reported, they made a small profit; that also happens to be the busiest quarter of the year. I am guessing that they're going to show some kind of rise in forecasted EBITDA, earnings before interest taxes, depreciation, and amortization adjusted earnings, for this year.
But the competition is so fierce. I was preparing for this show this morning and just saw that Disney announced that it selected the Impossible Burger as its preferred plant-based burger on its menus. And one of our very own, Rich Duprey, who is a consumer goods guru, our Fool, Rich wrote today that, "That means that Impossible Burgers is going to be in front of hundreds of millions of people over the years, new people, just through Disney and it has 460 global eateries." And that is awesome branding, if you're visiting Disney and maybe your kids try their first Impossible Burger. So, it is so competitive.
On the other hand, the one thing I will say -- and I've made this mistake too, Emily, is when you've got a really strong brand and you've also got a huge total addressable market, there is some room there to make some mistakes. Right now, Beyond only has six major SKUs, stock keeping units, in grocery stores, it talks about -- the company does -- $1.5 trillion market opportunity, because that is the total addressable market in the food business. So, there is -- perhaps over time frame of years -- there's some opportunity for it to stumble and then get its bearings again. And as long as it maintains that strong brand presence and can build on it, now, as sort of one of the first movers, there's some space.
And I've ignored that in the past. I've always looked at -- maybe to what you're alluding to -- "yeah, it's a strong brand, but profits are slim." I'm training myself more to make sure that if there's a promising company that I like with a good brand and that total addressable market is huge, maybe pay a little bit more attention. That doesn't mean that it's going to ultimately be the most successful, but it means that with the right type of product, with strong market demand and a decent strong balance sheet, it probably can do OK and at some point, earn into a high multiple like this company has.
Flippen: Well, it would be interesting to see how it performs on Thursday. And maybe we'll just allow one season more, right, both, in terms of time and flavor maybe. I'm giving Austin a good chuckle. [laughs]
Well, I guess the last story I want to talk to you about today is one that, honestly, it's not as glamorous, it's not hot pizza, not hot stocks, not hot trends, it's Kroger. You have nice earnings preview for us for Kroger, right, Asit?
Sharma: Well, you know some of you listening today are thinking, why are they talking about Kroger, it's a big company that's besieged by competition on all fronts and it's in a really low margin business? Well, folks, we're talking about Kroger because no one less than Warren Buffett took an interest in this stock. I was thumbing through this obscure form -- maybe not obscure to Emily -- but an obscure form called 13-H, a couple weeks ago, and I saw that Berkshire Hathaway had purchased roughly 19 million shares of Kroger. And at current market value that's 570 million, so they spent $0.5 billion, pocket change for Berkshire Hathaway, but he took an interest in Kroger.
And I was intrigued by that, because I've been following this grocery industry pretty closely. And I thought to myself, "Why would Warren Buffett, who's just basking in the glow of that great Apple investment which has brought so many billions of unrealized market value into Berkshire's coffers, why would he take another troubled bet?" This is sort of the flipside of the losing Kraft Heinz investment, it's the retail side of the consumer-packaged goods food industry. Why would he take this investment?
And there are a couple of answers. The first is, this is sort of a throwback investment in terms of style. Harking back to Berkshire's original focus, which was on value plays. Berkshire is a huge fan of Benjamin Graham, a famous investor who laid out value investing principles back in the 1930s. And if you started looking just at Kroger's numbers. It's generating $4.5 billion in operating cash flow annually. The stock has been hit so hard over the last five years that its book value has been more than halved to 2.7-times book value; that's price of the stock. And if you looked at this forward PE, which is half of some other successful companies in the consumer goods industry, it trades at about 12-times forward earnings, you can see the rationale behind that. So, that's answer No. 1, why would Warren Buffett, why would Berkshire Hathaway buy the stock?
Answer No. 2. Warren Buffett didn't actually make this investment. Yesterday on CNBC, he was being interviewed. And he was like, "Yeah, you know, one of my lieutenants made that, I just OKed the investment." So, maybe uncle Warren is a little skeptical himself, but we know that his lieutenants who are vying to take over the company when he retires have made some phenomenal plays over the years.
Certainly, the stock seems a little undervalued. It has its pluses. It has the Restock Kroger program, which optimizes sales and optimizes their operations. It's got private brand growth. It's expanded its digital tool. So, delivery is now available to about 97% of customers and it's even got this alternate profit revenue stream which has nothing to do with groceries, which it's aiming to have about $100 million worth of this additional; it's a profit stream each year. So, there are some things going well for Kroger.
But I want to throw it back to you, Emily, with just this one stat. It generates a net profit margin of just 1.3%, which is sort of par for the course for many grocery stores. [laughs]
Flippen: Yeah, I'm not sure. If Warren Buffett investing in a company can't sell me, I'm not sure if anything could, to be honest. And Kroger feels like that type of company to me. And it's not a company that I'm interested in. When I look to invest, I try to -- I take this mantra from David Gardner himself -- I try to invest for what I want the future to look like in five, ten years in the future. And I'm challenged to see the space that Kroger plays.
And going back to the Benjamin Graham-style investing, you know, OG value investor there. It's a valuation technique based on book value and stuff that really isn't relevant in a lot of the ways that we invest today. In the consumer goods space, book value tends to be a little bit more relevant. But for the most part, I think these types of valuation methods downplay the importance of investments into technology and other intangible assets that really make a company successful. A company like Kroger feels like it's constantly trying to play catch up to where the market is going, it's not defining the future.
So, yeah it very well could be a good value play. And maybe that plays off well for a year or two, but when I think about how long I plan on holding companies that I'm invested in, I just don't see a future in which Kroger outperforms -- I don't want to say Apple, that's a classic Buffett stock, but even other consumer goods focused companies.
I prerecorded an episode with Maria today. We talked a little bit about Etsy, as a preview. Even just consumer goods companies like Etsy, that are defining the future of consumption. Kroger just feels very reactive to me, not proactive.
Sharma: I think it's a great summary of how you should look at Kroger. Now, I'm sure Kroger's management would argue that we've got a lot of technology that we've been investing in. They bought Ocado. I hope I'm pronouncing that correctly. That's the company that's helping them automate their warehouses. They now had 21% sales growth in digital sales in their last quarter. However, you know, they're up against Amazon, which has this two-pronged attack between Whole Foods and its own stores, this new pilot of stores that it's got. You have a resurgent Costco in the club channel, expansion in the U.S. from German discounters Aldi and Lidl, and you also have these great privately held big grocery stores not only in terms of units, but if you've ever walked into a Publix or a Wegmans -- the two that come to my mind -- you have dollar stores, there are so many types of competition that Kroger -- which is the largest U.S. grocer, pureplay U.S. grocer -- has to fend off, it's hard to see a future in which it becomes something more than a marginally better operating grocery store.
So, I am pretty sure that this is -- for Berkshire Hathaway -- relatively short-term for them. And it's interesting to see the progression of how Charlie Munger and Warren Buffett looked at investments 50 years ago versus today. Today they have become more like a typical Foolish investor. And I say that with some irony and some -- it's a little bit tongue-in-cheek because I know the Gardner brothers have modeled a lot of the way they see the world after Warren Buffett's principles. But there is something now that's more contemporary in the way Warren Buffett purchases a stock, that's more to what you just described, Emily, versus his classic roots as a value investor.
Flippen: Yeah. Is there anything that they could say, let's say, next week, I believe when they report, what would make you interested? Is there anything they could say that would make you feel like, "Wait a minute! Kroger's doing something. Kroger's a good investment right now."
Sharma: I think if they said, "We're going to leverage our balance sheet and specialize in buying up companies that will automate the grocery industry and a whole lot of other industries as well. And we're going to gradually solve our grocery operations." [laughs] I might be interested. Short of that -- I mean, if you're a Kroger investor, in all seriousness, I do have this one stat. Look at their identical sales growth, which is sort of their version of comps, you see that projection in the 3% to 5% growth range for 2020, that will bode well for the stock, but there's almost nothing -- and that's such a interesting and telling question, Emily -- there's almost nothing that pops into my mind that management could say that would make me take a very enthusiastic look, maybe a second look, but I just think the business that the company is in is a difficult one, it's fascinating -- I spend a lot of time in the grocery industry, but I don't necessarily put all my investment eggs into that industry.
Flippen: Well, that makes sense. And we'll keep an eye out for all of their earnings and all of the earnings that we talked about in today's show over the next week or so.
Thank you so much for joining us today, Asit.
Sharma: It's been so much fun.
Flippen: Listeners, that does it for this episode of Industry Focus. If you have any questions, feel free to shoot us an email at IndustryFocus@fool.com or tweet us @MFIndustryFocus.
As always, people on the program may own companies discussed in the show, and The Motley Fool may have formal recommendations for or against any of the stocks mentioned, so don't buy or sell anything based solely on what you hear.
Thanks to Austin Morgan for his work behind the glass today. For Asit Sharma, I'm Emily Flippen, thanks for listening and Fool on!