Kroger and Albertsons plan to sell over 400 stores in connection with $24 6B merger

grocery store stocks

Net sales and other revenue amounted to $16.7 billion during the 12 weeks ended December 4, 2021 compared to $15.4 billion in 2020. The company said retail price inflation and COVID-19 vaccines contributed to the increase. Investing in Kroger is a longer-term play; its short-term performance can be volatile due to market fluctuations and other unpredictable events. However, based on its long track record of growth and positive returns, investments you make now will likely continue to yield positive returns over time.

The market capitalization of this company is about 10.10 billion USD. When people have a little extra cash, they indulge in offerings from these companies. We’ll be in your inbox every morning Monday-Saturday with all the day’s top business news, inspiring stories, best advice and exclusive reporting from Entrepreneur. The company is raising the average hourly rate for delivery drivers to $20.50 by mid-October. You owe it to yourself to watch this timely presentation before placing your next trade.

Numerous businesses produce, pack, and ship these products to you. Walmart reported third-quarter earnings on November 15th, 2022, and results were better than expected for both the top and adjusted bottom lines. Total revenue was up 8.8% to $153 billion, powered by comparable sales of +8.2% in the US. “I hate food stamp day,” a man named Malik wrote in a caption of his TikTok post, published Monday. Malik included a hashtag for Food Lion, an American grocery store chain.

No. 2 Sprouts Farmers Market (Nasdaq: SFM)

The stock’s five-year performance is up 100% and pays a 2.48% annual dividend yield. It has its private label brand products, which are more economical for consumers while quality remains high. The company has over 400,000 employees with annual revenues north of $135 billion. The stock’s five-year performance is up 97% and pays a 2.17% annual dividend yield.

  • Investors can benefit from including manufacturers and sellers of private label items in their “grocery stocks to buy” list.
  • Tyson profitability will suffer as industry trends normalize in the post-pandemic period, but the company remains a leader in the meat industry.
  • In addition, it ensures its customers’ access to fresher products.
  • Grocery store stocks are defensive consumer staples because their products and services are essential to daily life.

C&S has been looking to build its own store presence in a fiercely competitive market for supplying groceries. It lost one of its largest customers when Ahold Delhaize (AD.AS) decided to transition to self-distribution in 2019. At Sure Dividend, we often advocate for investing in companies with a high probability of increasing their dividends each and every year. Target and Walmart have the longest histories of annual dividend increases, while Kroger, Costco, SpartanNash, and Dollar General also have meaningful dividend growth histories.

Dividend Kings With the Fastest Distribution Growth

Grocery stores are historically resilient during economic downturns because shoppers still need to eat, no matter the economic environment. Grocery stocks have highly defensive characteristics and remain relatively stable even during tough economic conditions. Click here to instantly download your free spreadsheet of all 65 Dividend Aristocrats now, along with important investing metrics.

grocery store stocks

Consumer staples, including grocery store stocks, can boost portfolio diversification, offer steady growth, give you solid dividends and low volatility. Grocery stocks offer a built-in natural bear market defense due to strong demand. Grocery stores’ currently inflated grocery prices means you can also capitalize on costs passed on to consumers.

Costco Wholesale (COST)

After all this, Sprouts Farmers Market is a grocery stock with great growth potential. CASY operates convenience stores under the Casey’s and Casey’s General Store names. It offers a selection of food, beverages, tobacco, and nicotine products; health and beauty aids; automotive products; and other non-food items. The company’s stores also provide motor fuel, gasoline, and diesel fuel. Grocery stores generally have higher margins than other retail sectors, meaning your investments can offer great returns with less risk. Depending on the store’s location, you may have volatile regional markets, which could lead to changes in demand.

The deal would give privately held C&S, primarily a supplier rather than an operator of grocery stores, a much more significant footprint. It currently operates about two dozen stores under the Grand Union and Piggly Wiggly brands. The global grocery shopping and food retail business has always been one of the largest markets globally. As long as we are alive, we will need food and other products to keep ourselves healthy and well cared for.

The company ultimately offers consumers on-demand access to e-commerce. While not technically a grocery store, we’re adding on DoorDash Inc. for good measure. Target’s total sales have grown more than $27 billion since 2019, which amounts to $14 billion of additional store sales and digital sales growth of nearly $13 billion. All five core merchandise categories delivered double-digit comparable sales growth in 2021.

Best Grocery Stocks to Buy Now In 2023

Kroger is a large-cap grocery store stock with a long history of strong performance. Founded in 1883, Kroger operated over 1,200 stores in over 20 states as of 2023. It’s the largest traditional grocery retailer in the United States and reported more than $148 billion in sales for 2022.

  • Reuters provides business, financial, national and international news to professionals via desktop terminals, the world’s media organizations, industry events and directly to consumers.
  • Kroger’s estimated annualized total returns over the next five years come in at 8.0%, driven by 3.0% earnings-per-share growth, a 2.3% dividend yield, and the potential for a valuation tailwind.
  • Direct investment involves buying a stake in an existing grocery store or opening a new one yourself.
  • Additionally, the company’s EBITDA increased 3.8% year-over-year to $121.54 million, while its net EPS came in at $0.61, representing an 8.9% increase from the prior-year quarter.

Albertsons (ACI) is one of the largest food and drug retailers in the United States. With $70 billion in sales, a market cap of $11.6 billion and a history dating back to the 1860s. However, Albertsons only went public in 2020 and has paid a quarterly dividend since. Dollar General reported third quarter 2022 results on December 1st, 2022. The company is performing well due to new store openings, higher transaction amounts, and increased customer traffic, which is somewhat offset by store closures.

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The stock’s five-year performance is up 21% and pays a 2% annual dividend yield. Customers pay a monthly or annual membership fee to access deeply discounted groceries and products ranging from toilet paper and houseware to wine and gas. Its private label, Kirkland’s, is praised for its quality and low-priced goods.

ASPCA Launches Supermarket Scorecard to Take Stock of Grocery Stores’ Commitment to Farm Animal Welfare – Benzinga

ASPCA Launches Supermarket Scorecard to Take Stock of Grocery Stores’ Commitment to Farm Animal Welfare.

Posted: Mon, 28 Aug 2023 16:05:00 GMT [source]

Having a stable of iconic brands that consumers are unlikely to abandon sets up Mondelez well for an inflationary environment. Tyson sees revenue between $55 billion and $57 billion in fiscal 2023. The average analyst estimate calls for full-year earnings per share of $4.30, putting the price-to-earnings ratio at about 14. Tyson profitability will suffer as industry trends normalize in the post-pandemic period, but the company remains a leader in the meat industry. The meat industry has recovered from the challenges of plant shutdowns and COVID-19 outbreaks early in the pandemic.

Grocery stocks have shown to be an inflation hedge because rising inflation benefits their margins, and they usually pass on the extra costs to shoppers. Large grocery store companies that import many items internationally also benefit from a rising U.S. dollar. A strong dollar enables these giants to buy and import cheaply overseas and sell at a more significant margin in the U.S. Costco’s estimated annualized total returns over the next five years comes in at 8.1%, driven by 9.0% earnings-per-share growth, a 0.7% dividend yield, and the potential for a valuation headwind.

The best food companies have strong brands that compel consumers to pay up for their products, and they also enjoy economies of scale that keep costs low. Pricing power and cost advantages are particularly important now, with inflation squeezing budgets and supply chain costs rising. The global food and grocery retail market was worth almost $11.3 trillion crowding out meaning in 2021, and it’s likely to grow right along with the population in coming years. There are plenty of companies competing for consumers’ food dollars. For the fiscal second quarter that ended October 31, 2022, CASY’s total revenue increased 21.9% year-over-year to $3.98 billion. The company’s net income increased 42.1% year-over-year to $137.56 million.

The company has an impressive earnings surprise history, surpassing the consensus EPS estimates in three of the trailing four quarters. The stock has gained 11.3% over the past six months to close the last trading session at $143.72. WMT’s EPS for the quarter ending April 30, 2023, is expected to increase 6.5% year-over-year to $1.38.

grocery store stocks

Enter your email below to reveal the top two grocery store stocks to buy. As we’ve seen with other subscription based businesses, this can help build customer loyalty. And not to mention, the recurring stream of revenue is a big plus for investors. For a big stamp of approval, Warren Buffett’s right hand man, Charlie Munger, has been on Costco’s Board since 1997. Even in downturns Costco finds a way to perform well, making it deserving of our spot as the top grocery stock to buy. This makes it one of the largest in the world for stores, clubs and direct delivery to customers.

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