Whole Foods Market, Inc. (WFM), The Fresh Market Inc (TFM): What To Watch In This Release

Obviously, these stats show a great variance in SSF. Whole Foods Market, Inc. (NASDAQ:WFM) is a much bigger, nationwide competitor, while Sprouts is focused in the American Southwest, and Fairway is limited to the Northeast.

The Fresh Market operates in 25 states right now, so it’s somewhere between these two extremes. I would say that if The Fresh Market could show a 5% increase in SSF — or about $133 — that would be a solid sign for investors.

Comparable-store sales
The one major problem with SSF is that new stores that open during the middle of a quarter are counted, even though they might not have been operating for the full quarter. That was the case for Fairway, which was the only store of our group showing a negative trend.

Because The Fresh Market definitely fits in the “growth” category for grocery stores, there may be no more important indicator than growth in same-store sales, which tells you whether the value The Fresh Market offers is catching on with consumers.

Again, let’s look at how The Fresh Market’s peer group has fared this past quarter to get some perspective.

Source: SEC filings.

Currently, The Fresh Market Inc (NASDAQ:TFM) trades for about 40 times earnings. That’s more than Whole Foods Market, Inc. (NASDAQ:WFM), a grocer with a stronger brand, larger footprint, and less store growth potential than The Fresh Market. If The Fresh Market is going to maintain such a lofty valuation, it’s going to have to show strong comparable-store sales. Last quarter’s 3% rise just isn’t going to cut it, and the company is going to need to show, at the very least, a 5% pop in comparable-store sales.

The article 3 Things to Watch in The Fresh Market’s Upcoming Earnings Announcement originally appeared on Fool.com and is written by Brian Stoffel.

Fool contributor Brian Stoffel owns shares of Whole Foods Market (NASDAQ:WFM). The Motley Fool recommends The Fresh Market and Whole Foods Market and owns shares of Whole Foods Market.

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