Whole Foods Market Announces New $1 Billion Share Repurchase Program, Dividend Increase and New Capital Structure Plan

S&P Lowers Outlook on Whole Foods (WFM) to Negative; Sees Credit Measures Weakening

Standard & Poor's Ratings Services revised the outlook on Whole Foods Market Inc. (Nasdaq: WFM) to negative from stable. We affirmed the 'BBB-' corporate credit rating.

At the same time, we assigned a 'BBB-' issue rating to the company's new $500 million revolving credit facility.

"The outlook revision reflects our expectations that Whole Foods' credit protection measures could weaken below our previous forecast over the next two years because of less conservative financial policies combined with weaker operating performance," said credit analyst Kristina Koltunicki. "We... More

Deutsche Bank Compares Whole Foods (WFM) to Kroger (KR) in 2001

Deutsche Bank maintained a Hold rating on Whole Foods Market (NASDAQ: WFM) and trimmed its price target to $26.00 (from $30.00). The change follows disappointing Q4 results. In the view of analyst Karen Short, the situation is "eerily reminiscent" to Kroger in 2001, when increasing competition on commoditized SKUs caused escalating comp and margin pressure.

Short explained, "We believe KRs journey in the early 2000s is instructive... More

Whole Foods Market (WFM) Guides Square Footage Growth Down to 7%; Piper Jaffray Remains Neutral

Piper Jaffray maintained a Neutral rating on Whole Foods Market (NASDAQ: WFM), and cut the price target to $30.00 (from $34.00), following the company's 4Q earnings report. Comparable sales continue to decelerate at Whole Foods as the retailer struggles to drive traffic to its stores. Q4 comps of (0.2%) compare to +0.7% consensus; traffic growth was (0.8%) while average basket grew... More

Current Valuation Puts a Floor Under Whole Foods Market (WFM) - RBC

Whole Foods reported adjusted 4Q15 EPS of $0.16 (adj. $0.30), compared to consensus estimate of $0.34. Comparable same store sales declined (-2.1%) against positive consensus expectations of 0.8%. To cushion the blow management also announced a $1 billion stock buyback, dividend increase and capital structure plan.

William Kirk from RBC Capital believes... More

Whole Foods Market (WFM) PT Cut to $29 at Jefferies

Jefferies analyst Mark Wiltamuth reiterated a Hold rating and cut its price target on Whole Foods Market (NASDAQ: WFM) to $29.00 (from $33.00) following weak Q4 results as competition intensifies.

Wiltamuth commented, "WFM reported a 4Q shortfall on -0.2% comps and a sharp... More

Whole Foods Market (WFM) Posts Q4 GAAP EPS of 16c; Approves New $1B Buyback Plan

(Updated - November 4, 2015 4:08 PM EST)

Whole Foods Market (NASDAQ: WFM) reported Q4 EPS of $0.16, which may not compare with the analyst estimate of $0.35. Revenue for the quarter came in at $3.4 billion versus the consensus estimate of $3.47 billion.

Results included a non-cash asset impairment charge of $46 million, or $0.08 per diluted share, and a restructuring charge of $34 million, or $0.06 per diluted share

Comparable store sales on a constant currency basis decreased 0.2%, versus the consensus of up 0.7%.

The company also announced a new capital allocation strategy that reflects confidence in the Company's future... More