Whole Foods Markets (WFM)

[DewDiligence]

WFM +9% on stake by activist investor, Jana Partners:

https://www.wsj.com/articles/activist-investor-jana-partners-takes-nearly-9-stake-in-whole-foods-1491849374

Activist investor Jana Partners LLC has amassed a nearly 9% stake in Whole Foods Market Inc. and wants the upscale organic grocer to speed up its turnaround efforts while also exploring a possible sale.

Jana, Whole Foods’ second-largest shareholder, is planning to press the chain to improve its technology and operations to better compete with larger rivals, shake up its board and find out how much a potential bidder might be willing to pay, according to people familiar with the matter.

Whole Foods couldn’t immediately comment.

Jana’s campaign is the latest quandary for Whole Foods, which has struggled to make the transition from high-flying upstart with a loyal following into a large, national chain with the kind of back-office systems tracking customers and inventory that rivals use to keep costs down and sales up.

…Jana has lined up a potential slate of board nominees, the people said, four months before the deadline to launch a board fight. That’s likely a signal that Jana, which has quietly reached settlements with several companies this year to install new directors, will be aggressive in demanding change at Whole Foods.