Topic: How To Invest

The Successful Investor Hotline – Friday, February 23, 2024

Article Excerpt

LOBLAW COMPANIES LTD., $144.60, Toronto symbol L, is a buy. The company operates 1,104 supermarkets under several banners, including Loblaws, Zehrs, Provigo, Real Canadian Superstore and No Frills. In March 2014, it purchased the Shoppers Drug Mart chain for $12.3 billion in cash and shares. Shoppers operates 1,351 drugstores across Canada. Loblaw continues to benefit from higher selling prices, which helps it offset rising costs for food, fuel and other inputs. Higher food prices are also spurring sales at its discount outlets. In the quarter ended December 30, 2023, overall sales rose 3.7%, to $14.53 billion from $14.01 billion a year earlier. That topped the consensus forecast of $14.52 billion. Same-store sales for its supermarkets rose 2.0% from a year earlier as higher prices offset flat customer traffic and a decline in the average amount spent per visit. Shoppers Drug Mart’s overall same-store sales gained 4.6% in the quarter. Pharmacy same-store sales growth was 8.0%, thanks to a higher number of filled prescriptions and higher prices. Same-store…