Can Whole Foods' organic growth continue?

The grocer has a strong brand and loyal customers, but competition is heating up

Whole Foods
(Image credit: facebook.com/wholefoods)

Whole Foods Market opened its first store in Austin, Texas, in 1980 and has since become the undisputed king of organic grocers. The company has laid out plans to open 1,000 stores in the U.S. in the coming decades, but it remains to be seen if its business model can support this kind of growth in the long term. Let's use our CHEAT SHEET investing framework to decide whether Whole Foods is an OUTPERFORM, WAIT AND SEE, or STAY AWAY.

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Row 0 - Cell 0 2013 Q22013 Q12012 Q42012 Q32012 Q2
Qtrly. EPS$0.38$0.39$0.30$0.32$0.32
EPS Growth YoY18.75%20.00%43.82%26.00%25.49%
Revenue Growth YoY13.37%13.71%23.64%13.65%13.59%
Swipe to scroll horizontally
Row 0 - Cell 0 WFMTFMVSI
Forward P/E32.7428.5718.01
Price/Sales1.681.901.50
Operating Margin6.71%7.76%10.76%
ROE14.61%36.26%14.92%
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