Whole Foods Market, Inc. (WFM): If You Thought This Stock Would Be an Unhealthy Option, Think Again!

Page 1 of 2

Natural and organic food provider Whole Foods Market, Inc. (NASDAQ:WFM) posted a mixed first-quarter recently. Though investors were not very happy with the results and the stock plunged sharply, I believe there are more reasons for joy and merriment. Let us check how.

The Quarter in Detail

Driven by higher product prices and more demand for healthy products, revenue surged 14% to $3.86 billion over last year. The company caters to a niche market where consumers are willing to pay a premium for good quality natural products. Most of them are unmoved by the price changes. Moreover, the supermarket operator’s new product offerings grabbed the attention of the customers, leading to higher sales.

Whole Foods Market, Inc. (NASDAQ:WFM)Moving onto the bottom line, it exceeded the Street’s expectations. Earnings jumped 20% over last year, clocking 78 cents a share. Earnings increased in spite of huge costs incurred on opening 10 new stores as well as remodeling some of the stores. Whole Foods Market, Inc. (NASDAQ:WFM) managed its costs quite well and deserves appreciation.

Attractive Market

Market for organic foods has been growing rapidly as customers get more and more health conscious, so much so that even beverage makers such as PepsiCo (NYSE:PEP) are entering this market. PepsiCo and many other beverage players have been expanding their product lines to include healthier beverages such as juices and other energy drinks. For instance, PepsiCo had launched a low calorie drink called Pepsi Next, which is being well received by consumers and has managed to register annual sales of $100 million. This has helped customers in keeping away from sodas, which are harmful for health. Also, it has helped the company witness a 5% organic growth in its fourth quarter and full year results.

In fact, PepsiCo also eyes the growing yogurt business, which has been the hottest product for all organic food companies. A typical example here is General Mills (NYSE:GIS), which has a wide range of frozen yogurts to attract customers in hordes. Also, General Mills’ addition of different flavors to the product has made people go gaga over it, leading to increased sales each quarter. Mills’ acquisition of Yoplait, a yogurt giant in Paris, proved to be remarkably beneficial to the company, helping its top line grow each quarter. General Mills registered 9% surge in yogurt category sales in Canada. Also, the company expects the yogurt sales category to perform even better with the introduction of Greek 100-calorie yogurts, which is the third best performing product in the segment.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

12 Most Expensive Countries for Foreign Students

Top 30 Most Influential Women in the World

Top 20 Most Expensive New Year Eve Shows

Top 5 Best Vocational Careers

Top 10 Jobs for 2014 by Salary Gain (Predictions)

Top 5 Digital Trends for 2014

Top 6 Things You Can Do To Increase Your Productivity

Top 9 Trending Smartphones in 2013

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!