In the following video, Fool.com analysts Austin Smith and Jim Mueller are generally upbeat about Whole Foods Market (NASDAQ: WFM), but they want to warn investors of three risks the company faces.
Jim thinks the possibility of another recession is the biggest risk to this upscale organic-grocery chain, as the Great Recession correlated with Whole Foods' largest stock-price drop. Two other threats to the store's profitability are higher underlying food costs and an increase in commercial lease rates.
Austin points out that while these three threats could hurt Whole Foods' bottom line, they'd also harm its competitors. On the whole, the analysts share a cautiously optimistic outlook.
