Whole Foods Market, Inc. (WFM): The Fresh Market Inc (TFM) Goes Stale

The Fresh Market Inc (NASDAQ:TFM) said that it’s confident in its competitive ability in the new markets it’s entering, but it simply doesn’t have the brand strength that Whole Foods Market, Inc. (NASDAQ:WFM) does — yet. Whole Foods has been a national chain for longer, and the business is now having an easier time growing based on that strength. The company has a pipeline of 94 new locations that it’s planning on opening over close to a three-year period.

Looking at Whole Foods Market, Inc. (NASDAQ:WFM)’ rate of store openings and its comparable-sales growth, it’s easy to see why investors were upset with The Fresh Market Inc (NASDAQ:TFM)’s showing. At midday, the stock was down almost 10% while Whole Foods had risen 1.5%. Whole Foods continues to pace the S&P 500, while Fresh Market has fallen behind, and if results continue to lag behind, Fresh Market may simply continue falling.

The article The Fresh Market Goes Stale originally appeared on Fool.com and is written by Andrew Marder.

Fool contributor Andrew Marder has no position in any stocks mentioned. The Motley Fool recommends The Fresh Market. It recommends and owns shares of Whole Foods Market. 

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