Whole Foods Markets (WFM)

[DewDiligence]

WFM reports FY4Q16 results—initial FY2017 guidance is as follows:

http://investor.wholefoodsmarket.com/investors/press-releases/press-release-details/2016/Whole-Foods-Market-Reports-Fourth-Quarter-and-Fiscal-Year-2016-Results/default.aspx

• Sales growth of 2.5% to 4.5%

• Comps of -2% to 0%

• Ending square footage growth of approximately 6%, reflecting approximately 30 new stores, including up to six relocations and four 365 stores

• Diluted EPS of $1.42 or greater, excluding any potential share repurchases

• EBITDA margin of approximately 8.2%

• Capital expenditures of 4% of sales

• ROIC of 11% or greater

Thankfully, comps improved to -1.6% in October from -2.6% during Jul-Sep. Not good, but a little less bad.

WFM is eliminating its awkward dual-CEO management; founder, John Mackey will become the sole CEO effective 1/1/17 (http://finance.yahoo.com/news/whole-foods-market-announces-changes-201500942.html ).

The stock is +4% in AH trading.