Whole Foods Markets, Inc. Fiscal Year 2016 Outlook*
The company remains focused on the metrics it believes are key to the long-term health of its business and is targeting:
- Sales growth of 3% to 5%
- Approximately 30 new stores, including three 365 stores and two to three relocations
- Square footage growth of 7% or greater
- EBITDA margin of approximately 8.5%
- Capital expenditures of 5% of sales
- ROIC greater than 13.5%
*Released by WFM via Q1 2016 press release
During Q2 2015, Whole Foods Markets, Inc. announced they would open up a new chain of smaller stores (30,000 sq.ft vs the 39,000 sq ft Whole Foods) whereby they will be targeting millennials who are more price sensitive all the while keeping the same high quality standards. What remains to be seen is whether or not these stores WFM later revealed to be called "
365" can be successful and not significantly cannibalize their existing store sales.
Highlight Technicals
Whole Foods Markets, Inc. has been tumbling since its high of approximately $65.00 in 2013. While the stock did rebound in late 2014 and early 2015, since then it has gone back to 2007 levels.
From a technical perspective, WFM is currently in a $28 and $35 range. While at the same time we've seen that the support levels of 2014 have become resistance. If we see WFM break out of the $35 range and sustained price action, there would be a good chance of $35 becoming support again. Otherwise we will see a roll over below $28. We are in a long-term downtrend.