The following video is from Thursday's MarketFoolery podcast, in which host Chris Hill, along with analysts Jim Gillies and Jason Moser, discusses the top business and investing stories.
What happens when you continually exceed expectations quarter after quarter for years on end -- even in the grocer business, where profit margins are paper-thin -- and then you suddenly have a quarter that's "just" excellent? You get Whole Foods' (NASDAQ: WFM) problem. In this segment, the guys talk about what happens when a sublime company like Whole Foods sets the bar for itself too high, and why "only" meeting the company's excellent earnings predictions, and not exceeding them, can mean a downtick in stock price for shareholders who have learned to be spoiled and want more.
Chris Hill owns shares of Starbucks. Jason Moser owns shares of Starbucks. The Motley Fool owns shares of Starbucks and Whole Foods Market and has the following options: short JAN 2013 $47.00 puts on Starbucks. Motley Fool newsletter services recommend Starbucks 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.