1. Whole Foods at Mid-Year
3 Things You Need to Know

2. 1) Earnings Disappointments
Wall Street has not reacted kindly to Whole Foods’ earnings reports

3. 1) Earnings Disappointments
• After years of same-store-sales growth above 6%,
Whole Foods reported that the metric fell to 5.9%
during the fourth quarter of 2013, and 4.5% at the
beginning of this year.
• Additionally, earnings came in below analyst
expectations for both quarters.
• Management made clear that competition was
being felt in slower sales, and that the company
would be lowering prices to compete on costs with
others entering the organic field.

4. 2) Ramping Up Store Openings

5. 2) Ramping Up Store Openings
• Earlier this year, co-CEOs Walter Robb and John Mackey
announced that they believed the U.S. could support
1,200 Whole Foods locations, up 20% from previous
estimates. Currently, there are 374 locations.
• During the first quarter earnings release, management
laid out the blueprint for further expansion.
– In 2014, open 37 locations, bringing count to 398.
– In 2015, open 42 locations, bringing count to 436.
– In 2016, open 46 locations, bringing count to 478.
– In 2017, open 50 locations, bringing count to 524.
– In 2018, open 55 locations, bringing count to 575.

6. 3) What to Watch
Can management deliver on growth and same-
store-sales estimates?

7. 3) What to Watch
Store Build-Out
• Whole Foods has its
work cut out to meet
these lofty goals.
• When the company
reports earnings, check
to make sure it still
believes there will be
398 locations by the end
of fiscal 2014.
Same-Store Sales
• In order to meet
expectations, Whole
Foods needs to show
growth in this metric of
roughly 5.4%.
• Anything above 5.5%
would be a huge
positive.

8. Having the prescience to foresee the organic movement could have made you a fortune.
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