The FTC may block Whole Foods Market (WFMI) from buying Wild Oats Markets (OATS). Both companies are in the organic grocery business, and the government will argue this week that the combination would eliminate price competition between the two chains.
If the deal is blocked, Wild Oats has a lot of work to do.
In the last quarter, OATS had a very modest increase in revenue from $298 million in the first quarter last year to $309.9 million. Operating income fell from $4.4 million to $3.2 million.
The full year 2006 was not any better, Revenue rose to $1.183 billion from $1.124 billion. Operating loss for 2006 was $11.2 million, but the company had $28.2 million restructuring charge. Operating income in 2005 was $10.6 million.
The latter-day hippie crowd must be on a diet.
Wild Oats has a cost problem that might be solved if it is bought. Right now it has a crummy business. In May 2006, its shares were over $20. They now trade at $14.50.
It the deal with Whole Foods is killed, OATS shares may not fall much. But, the cost structure of the entire company will have to be revamped if the shares are going to move up again.
Douglas A. McIntyre
The #1 Thing to Do Before You Claim Social Security (Sponsor)
Choosing the right (or wrong) time to claim Social Security can dramatically change your retirement. So, before making one of the biggest decisions of your financial life, it’s a smart idea to get an extra set of eyes on your complete financial situation.
A financial advisor can help you decide the right Social Security option for you and your family. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.
Click here to match with up to 3 financial pros who would be excited to help you optimize your Social Security outcomes.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
