Why Whole Foods Market, Inc. (WFM) Will Continue to Thrive

Other grocery store chains possess less room for expansion. For example, rival The Kroger Co. (NYSE:KR) operates over 2,400 supermarkets and will inherit over 200 more with the Harris Teeter Supermarkets Inc (NYSE:HTSI) acquisition. Kroger’s same store sales increased 3%, representing half of Whole Foods Market, Inc. (NASDAQ:WFM)’ amount. The Kroger Co. (NYSE:KR)’s future economic prospects will also depend upon offering more organic food or the acquisition of other organic food businesses.

McDonald’s Corporation (NYSE:MCD) also faces market saturation in addition to changing consumer tastes. The global restaurant chain and its franchisees operate over 34,000 restaurants worldwide. Comparable store sales decreased 1% in its most recent quarter. The future prosperity of this company and its stakeholders will depend on healthy product innovation as well as continued international expansion.

Conclusion

Look for Whole Foods Market, Inc. (NASDAQ:WFM) to continue to benefit from increasing consumer preference for organic food and continued expansion. Employees and stakeholders will happily and cheerfully ensure Whole Foods success. Also look for competition to intensify as companies such as The Kroger Co. (NYSE:KR) increase offerings of organic food. Companies such as McDonald’s Corporation (NYSE:MCD) and The The Coca-Cola Company (NYSE:KO) that sell foods and beverages perceived as unhealthy will need to innovate their products to cater to this continuing shift in consumer preference.

William Bias has positions in The Coca-Cola Company (NYSE:KO) and McDonald’s. The Motley Fool recommends The Coca-Cola Company (NYSE:KO), McDonald’s, and Whole Foods Market, Inc. (NASDAQ:WFM). The Motley Fool owns shares of McDonald’s Corporation (NYSE:MCD) and Whole Foods Market.

The article 3 Reasons Why This Company Will Continue to Thrive originally appeared on Fool.com.

William is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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