Grocery Industry Leader

Who is the Industry Leader?

Kroger 

 List of Stores that are included:

Kroger 

 Other stores listed under Kroger

Safeway 

Whole Foods 

 Much of the growth of Whole Foods have been accomplished through mergers and acquisitions.

Whole Foods 

 Whole Foods Market has grown to become the largest pure-play natural grocery chain in the US.  The company targets customers who are willing to pay a premium for the grocer's high quality goods.  In fiscal 2011, Whole Food's sales and operating margins, were roughly double Safeway and Krogers' metrics.

Publix 

 Largest employee-owned supermarket chain in the United States  One of the 10 largest-volume supermarket chains in the United States  2011 retail sales of $27.0 billion  Current employee count of more than 152,000

Liquidity Ratios 

 Whole Foods and Publix have the most liquidity  Kroger and Safeway are negative, they need to reduce current liabilities or increase current assets

Financial Leverage Ratios



 Kroger has the most leverage, followed by Safeway and Publix  Since Whole Foods has the least amount of debt, their leverage is low.

Asset Management 

 Inventory turnover demonstrates how fast the company can sell their product.  While Kroger is cash efficient, Whole foods has the quickest inventory turnover.

Profitability Ratios 

 Publix has the most return on Equity and on Invested Capital

Market Value Ratios 

 According to Morningstar, Whole Foods has the highest PE ratio.  In general, a high PE ratio suggests that investors are expecting higher earnings growth in the future compared to companies with a lower PE ratio

Financial Statements 

 Kroger leads in assets and gross profit

Industry leader 

 Which ratios are the most important?  To an investor? A shareholder? A creditor  Whole Foods  Publix  Kroger  Safeway