Topic: How To Invest

The Successful Investor Hotline – Friday, November 18, 2022

Article Excerpt

LOBLAW COMPANIES LTD., $110.94, Toronto symbol L, is a buy. The company operates 1,092 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 1,344 drugstores across Canada. Loblaw has increased its selling prices in response to rising costs for food, fuel and other inputs. It’s also benefitting from strong demand for cough and cold medications, and cosmetics. In the quarter ended October 8, 2022, overall sales rose 8.3%, to $17.39 billion from $16.05 billion a year earlier. That topped the consensus forecast of $16.83 billion. Same-store sales for its supermarkets rose 6.9% from a year earlier as both higher prices and customer traffic offset a decline in the average amount spent per visit. Shoppers Drug Mart’s overall same-store sales gained 7.7% in the quarter. Pharmacy same-store sales growth was 4.7%, thanks to a higher number of filled prescriptions and higher prices. Same-store…