Topic: How To Invest

Pat: What do you think of Whole Foods Market as a buy?

Article Excerpt

Whole Foods Market Inc., $63.50, symbol WFM on Nasdaq (Shares outstanding: 178.6 million; Market cap: $10.8 billion; www.wholefoodsmarket.com), is the largest retailer of natural and organic foods in the U.S. Whole Foods was founded in Austin, Texas, in 1980, when three local businessmen decided the natural-foods industry was ready for a supermarket format. Whole Foods now operates 308 stores in the U.S., Canada and the U.K. However, the U.S. accounts for 97% of its sales. The company plans to open 32 new stores within the next two years. Whole Foods sells a selection of perishable foods, mainly natural foods or organic products. It also sells mainstream national brands. The company’s food comes from all over the world, but Whole Foods focuses on selling foods from local farmers. In August 2007, Whole Foods bought its main competitor, Wild Oats Markets, for $565 million in cash. It also assumed $148 million of Wild Oats’ debt. Wild Oats had 106 stores in 23 states,…