Market Minute: A&P Goes 'On Sale'; Starbucks Earnings Perk Up

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Another supermarket chain is going up for sale, and Starbucks continues to percolate. Those and more are what's in business news Friday.

The Dow industrials (^DJI) edged 13 points higher Thursday and the S&P 500 (^GPSC) added 4 points, while the Nasdaq (^IXIC) rose 25.

A&P sale grocery stores retail food buyouts acquisitions kroger ahold
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The Great Atlantic & Pacific Tea Co. -- better known as A&P -- is likely to put itself up for sale. The Wall Street Journal reports (subscription required) the supermarket chain could be worth a billion dollars or more.

A&P emerged from bankruptcy protection early last year. Possible buyers include rivals Kroger (KR) and Ahold NV of The Netherlands. In addition to A&P, the company also operates SuperFresh, Food Emporium and Pathmark stores.

Starbucks' quarterly earnings jumped 25 percent, beating Wall Street expectations. The coffee giant also raised its forecast for the full year. Earlier this week Starbucks (SBUX) announced an alliance to sell Dannon Greek yogurt parfaits.

But Amazon.com (AMZN) posted a quarterly loss, as it continued to spend heavily on expansion. Revenue growth was a bit shy of expectations.

Other online players are in for a rough day. Gaming company Zynga (ZNGA) says its quarterly sales fell 31 percent from year ago. And it's giving up on a plan for a real-money gaming business, an idea that was expected to be a big profit-maker for the company.

The online travel company Expedia (EXPE) also disappointed. Its shares are set to tumble, and that could put pressure on rivals Priceline (PCLN) and Orbitz Worldwide (OWW).

Other stocks expected to a big hit following earnings news include mattress-maker Tempur Sealy International (TPX) and the semiconductor maker KLA-Tencor (KLAC).

But Gilead Sciences (GILD) is set to rally for a second straight day. Thursday it was earnings; today, bad news for a competitor. The Food and Drug Administration placed limits on clinical trials for a hepatitis C drug made by Vertex Pharmaceuticals (VRTX). Not surprisingly, Vertex is set to slide.

And the oil-drilling giant Halliburton (HAL) has agreed to plead guilty to destroying evidence related to the Gulf of Mexico oil spill three years ago. It will pay a relatively small fine -- $200,000 -- and make a $55 million contribution to an environmental group.

-Produced by Drew Trachtenberg.


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12 Comments

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Judith

OMG - I didn't even know A&P stores still existed. They haven't been in the Chicago area that I know of since I was a kid. Of course, I admit that I haven't been looking.

July 26 2013 at 4:19 PM Report abuse rate up rate down Reply
mantoll

I would like to see Wegmans buy them. Anyone would be better then the management they have now. They have run it into the dirt and treat their employees like slaves.

July 26 2013 at 3:28 PM Report abuse rate up rate down Reply
Dick

The A&P holds some fond memories for me as the place I used to go with my mom and dad on the weekend to do the grocery shopping for the weeks food for our family of 8 when I was a kid some 60+ years ago. If they sell, I hope it is to Kroger....their stores are very nice and competitive.

July 26 2013 at 12:40 PM Report abuse -1 rate up rate down Reply
RMS

Supposedly A and P will only sell if the buyer takes Pathmark too, and no one wants Pathmark. The same company also owns Waldbaums here in NY.

July 26 2013 at 10:56 AM Report abuse -1 rate up rate down Reply
1 reply to RMS's comment
Pat

I agree, but I would add Stop and Shop. Either one would be an enormus improvement over A&P.

July 26 2013 at 11:53 AM Report abuse -1 rate up rate down Reply
Lu

Please Shoprite buy the crappy A & P's

Shop rite supermarkets are the BEST! Take over all of America in supermarkets.

July 26 2013 at 10:53 AM Report abuse -1 rate up rate down Reply
Pllc15

Kroger has more to gain from acquiring A&P's 310 stores when bigness is a plus in that business. With more stores added to its already 3,600 supermarket empire, they will be able to demand increased volume discounts in prices from their vendors. You already notice they are price competitive even against Costco, Sam's Store and Wal-Mart.

July 26 2013 at 10:26 AM Report abuse -1 rate up rate down Reply
wizardsr4

You are so right on your view of the A&P back in the 50's. Called on the main office in the Gray Bar and even then they conducted business as if they were the only one out there. To bad ,they were at that time a force that should have looked at the market from the consumers needs and wants.

July 26 2013 at 10:22 AM Report abuse -1 rate up rate down Reply
marty_breen

America. Please do not allow a foreign company to but A&P. This store has been American and should stay that way. I am so angered when I learn that a business is bought by a foreign country or taken to a foreign country. We need the jobs here. I am hoping the A&P will stay American.

July 26 2013 at 10:17 AM Report abuse -1 rate up rate down Reply
dkelmstra

I thought A&P went out of business years ago. I have seen former A&P stores all over which are now other businesses. I once worked for A&P back in my high school days and that store closed long ago,

Why doesnt a group of black investors buy it and rename it BO&MOs and open stores in the inner cities to give blacks a place to shop?

July 26 2013 at 10:05 AM Report abuse +1 rate up rate down Reply
1 reply to dkelmstra's comment
maregolden

I believe A&P is currently owned by a German company.

July 26 2013 at 1:18 PM Report abuse -1 rate up rate down Reply
Lisa

I would love to have a Kroger or publix here in new York!!

July 26 2013 at 10:01 AM Report abuse rate up rate down Reply