Whole Foods' Problem With Success
Nov 9th 2012 1:28PM
Updated Nov 9th 2012 1:34PM
The following video is from Thursday's MarketFoolery podcast, in which host Chris Hill, along with analysts Jim Gillies and Jason Moser, discusses the top business and investing stories.
What happens when you continually exceed expectations quarter after quarter for years on end -- even in the grocer business, where profit margins are paper-thin -- and then you suddenly have a quarter that's "just" excellent? You get Whole Foods' (NAS: WFM) problem. In this segment, the guys talk about what happens when a sublime company like Whole Foods sets the bar for itself too high, and why "only" meeting the company's excellent earnings predictions, and not exceeding them, can mean a downtick in stock price for shareholders who have learned to be spoiled and want more.
It's hard to believe that a grocery store could book investors more than 30 times their initial investment, but that's just what Whole Foods has done for those who saw the organic trend coming some 20 years ago. However, it may not be too late to participate in the long-term growth of this organic foods powerhouse. In this brand-new premium report on the company, we walk through the key must-know items for every Whole Foods investor, including the main opportunities and threats facing the company. We're also providing a full year of regular analyst updates to go with it, so make sure to claim your copy today by clicking here.
The article Whole Foods' Problem With Success originally appeared on Fool.com.Chris Hill owns shares of Starbucks. Jason Moser owns shares of Starbucks. The Motley Fool owns shares of Starbucks and Whole Foods Market and has the following options: short JAN 2013 $47.00 puts on Starbucks. Motley Fool newsletter services recommend Starbucks and Whole Foods Market. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.