Essay About Whole Foods Market And Stock Price

Whole Foods Market
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Whole Foods Market is facing an increasingly competitive environment. Stock price has been declining due to the competition that they continuously face from conventional grocers, supercenters, and natural grocers. The multiple competitors affect Whole Foods market profitability and margins although they are the market leaders of natural and organic industry Whole Foods they must continuously create new innovations to keep their company on top. Based on the recent surprising collapse of stock price Short and her team which were a part of the “bull camp” and previously forecasted that Whole Food Stock was a “buy” and worth $60 per share based on their gains but because of the collapse Short and her team must now make the decision for whether or not to adjust their financial forecast. For short and her team this can mean that they can decide to make decisions from a bear or bull perspective. Bears’ risk the reputation of Whole Foods as a premium brand and cause the market to revalue their products.  Based on Exhibit 7 return on capital is optimistic because their numbers aren’t overly high but hopeful that the numbers will continuously increase. The numbers provided only go up but one or two percentages from the previous year’s actual numbers. Whole Foods success throughout the years based on the provided exhibits has a successful track record. according to Exhibit 7.4 Whole Foods average sales growth continues to grow and even had higher growth than the super centers and wholesalers. They also have continuous store growth sales year by year which went from 10108 in 2011 to 12917 in 2013. Also, the EBIT according to the case has been a success every year with gradual growth. One of the reasons Whole Foods has been successful is because of their honesty in the organic products that they sell which helps them maintain their status as the leaders of the organic market.