I am a freelance business writer. I formerly wrote articles for the Motley Fool Blogging Network, where I won several editor's choice awards. After that, I wrote articles for the main Motley Fool site. I typically focus on restaurants, retailers, and food manufacturers, considering both growth opportunities and valuation metrics. I usually look for long term investment opportunities and plan to hold stocks for several years.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in an ...

Core Insights - Two leading U.S.-based retailers have experienced significant increases in their Growth metrics, indicating a potential turnaround in performance [1][3] Group 1: Costco Wholesale Corp. - Costco Wholesale Corp. saw its Growth score rise from 57.41 to 90.06 within a week, attributed to strong fourth-quarter performance that exceeded analyst expectations [4] - The company is expanding its warehouse footprint with over 30 new openings planned, which is expected to enhance its revenue base [4] - Despite high scores in Growth and Quality, Costco performs poorly in Momentum and Value, with unfavorable price trends across all time frames [5] Group 2: Village Super Market Inc. - Village Super Market Inc.'s Growth score increased from 58.47 to 90.1 in just one week, driven by strong earnings growth and improved net profit margins despite external economic challenges [6] - The modest top-line growth has been offset by margin expansion, contributing to a better Growth ranking [6] - The stock scores high in Growth and Value but struggles in Momentum and Quality, also showing unfavorable price trends over short, medium, and long terms [7]

Core Insights - Village Super Market, Inc. (VLGEA) shares have decreased by 12.8% since the earnings report for the quarter ended July 26, 2025, contrasting with a 2.9% decline in the S&P 500 index during the same period [1] - The stock has seen a 20% decline over the past month, while the S&P 500 has grown by 1.2% [1] Financial Performance - Fiscal fourth-quarter earnings per share (EPS) for Class A common stock was $1.05, a slight increase from $1.04 in the previous year, representing a year-over-year growth of less than 1% [2] - Quarterly sales increased by 3.7% to $599.7 million from $578.2 million, driven by a 1.6% rise in same-store sales and contributions from a new store in Watchung, New Jersey [3] - Net income rose by 1% to $15.5 million from $15.4 million in the same quarter last year, while adjusted net income declined by 8% to $15.6 million from $16.9 million [4] Operating Efficiency - Operating and administrative expenses as a percentage of sales improved to 23.11% from 24.20% year-over-year, indicating enhanced operational efficiency [5] - Digital same-store sales grew by 11%, reflecting a shift in consumer preferences towards online grocery shopping [6] Strategic Focus - Management is focusing on digital transformation and operational efficiency, with an emphasis on cost control initiatives and store renovations as growth drivers [8] - The company is prioritizing the modernization and relocation of underperforming stores, as evidenced by the recent opening of a 72,000 square-foot ShopRite replacement store in Watchung, New Jersey [14] Challenges - Profitability was impacted by narrowed gross profit margins, which decreased to 28.17% from 29.34% due to price investments, cost inflation, and reduced rebates from Wakefern [3][10] - The cannibalization effect from new store openings and increased competitive pressure has tempered same-store sales growth and profitability [9]

PART I [ITEM I. BUSINESS](index=2&type=section&id=ITEM%20I.%20BUSINESS) Village Super Market operates 37 stores across four states, leveraging its Wakefern membership for scale in a competitive market, focusing on customer service, pricing, and store upgrades - Village Super Market, Inc. operates 34 supermarkets (ShopRite, Fairway) and 3 Gourmet Garage specialty markets across New Jersey (26), New York (6), Maryland (1), and Pennsylvania (1)[9](index=9&type=chunk) - The company is the second-largest member of Wakefern Food Corporation, benefiting from volume purchasing, distribution, retail technology, marketing, and advertising[9](index=9&type=chunk)[23](index=23&type=chunk)[24](index=24&type=chunk) - The supermarket industry is highly competitive with narrow profit margins, competing with various retail formats including national chains, warehouse clubs, and online providers. Village competes through superior customer service, competitive pricing, and a broad range of quality products, supported by loyalty programs and online ordering[10](index=10&type=chunk)[11](index=11&type=chunk)[39](index=39&type=chunk) Store Count and Sales Performance (Fiscal 2025) | Metric | Value | | :----- | :---- | | Total Stores | 37 | | Sales per store | $60,591 | | Sales per average square foot of selling space | $1,524 | Sales by Product Category (Fiscal 2025 vs. 2024) | Product Categories | 2025 (%) | 2024 (%) | | :----------------- | :------- | :------- | | Groceries | 34.9 | 35.0 | | Dairy and Frozen | 17.4 | 17.0 | | Produce | 13.1 | 13.3 | | Meats | 9.8 | 9.3 | | Non-Foods | 6.7 | 6.9 | | Deli and Prepared Food | 7.7 | 8.0 | | Pharmacy | 4.0 | 3.7 | | Seafood | 2.6 | 2.7 | | Bakery | 2.7 | 2.8 | | Liquor | 0.7 | 0.8 | | Other | 0.4 | 0.5 | [General Business Overview](index=2&type=section&id=GENERAL) Village Super Market operates 37 stores across four states, leveraging its Wakefern membership for scale in a competitive market, focusing on customer service, pricing, and store upgrades - Village Super Market, Inc. operates 34 supermarkets and 3 specialty markets across New Jersey, New York, Maryland, and Pennsylvania under the ShopRite, Fairway, and Gourmet Garage banners[9](index=9&type=chunk) - The company is the second-largest member of Wakefern Food Corporation, a retailer-owned food cooperative, which provides economies of scale in purchasing, distribution, technology, marketing, and advertising[9](index=9&type=chunk) - The supermarket industry is highly competitive, with Village competing on customer service, competitive pricing, and a broad range of quality products, including online ordering and loyalty programs[10](index=10&type=chunk)[11](index=11&type=chunk) Store Size Distribution (July 26, 2025) | Total Square Feet | Number of Stores | | :---------------- | :--------------- | | Greater than 60,000 | 18 | | 50,001 to 60,000 | 9 | | 40,001 to 50,000 | 4 | | 20,000 to 40,000 | 3 | | Less than 20,000 | 3 | | **Total** | **37** | [Acquisitions, Development and Expansion](index=3&type=section&id=ACQUISITIONS%2C%20DEVELOPMENT%20AND%20EXPANSION) The company actively upgrades and expands its supermarket chain through remodels, new store openings, and acquisitions, with significant capital expenditures planned for new and replacement stores - The Company has an ongoing program to upgrade and expand its supermarket chain through remodels, new store openings, and acquisitions, aiming to increase selling space[17](index=17&type=chunk) - Capital expenditures for fiscal 2026 are budgeted at **$75,000 thousand**, primarily for new replacement stores in East Orange, NJ (2026) and another in fiscal 2027, along with smaller remodels and technology upgrades[18](index=18&type=chunk)[116](index=116&type=chunk) - Village invested **$17,694 thousand** in a real estate partnership for a retail center in Old Bridge, NJ, which includes a replacement store, accounted for as an equity method investment[19](index=19&type=chunk) Recent Store Openings and Closures | Date | Event | Details | | :--- | :---- | :------ | | April 9, 2025 | Opened replacement ShopRite | 72,000 sq. ft. in Watchung, NJ, replacing a 44,000 sq. ft. store | | March 17, 2024 | Opened replacement ShopRite | 83,000 sq. ft. in Old Bridge, NJ, replacing a 32,000 sq. ft. store | | September 1, 2024 | Closed automated micro-fulfillment center | Facilitated online order fulfillment for south New Jersey stores | | November 1, 2023 | Closed Gourmet Garage store | 8,400 sq. ft. in New York City; impact not material | [Wakefern Food Corporation Relationship](index=4&type=section&id=WAKEFERN%20FOOD%20CORPORATION) Village is the second-largest member of Wakefern Food Corporation, benefiting from its cooperative structure, branded names, volume purchasing, and patronage dividends - Village is the second-largest member of Wakefern, owning **12.9%** of its outstanding stock as of July 26, 2025. Wakefern is the nation's largest retailer-owned food cooperative[23](index=23&type=chunk) - Benefits from Wakefern include use of branded names (ShopRite, Fairway, Gourmet Garage), volume purchasing, store and own-branded products (**18% of sales in fiscal 2025**), distribution, advertising, and advanced retail technology[24](index=24&type=chunk) - Wakefern distributes patronage dividends to stockholders based on purchase volume, which are recorded as a reduction of cost of sales for Village[25](index=25&type=chunk)[98](index=98&type=chunk) - Village is obligated to purchase a minimum of **85%** of its product requirements from Wakefern and fulfilled this obligation in fiscal 2025 and 2024[29](index=29&type=chunk) - The Company's investment in Wakefern and affiliates was **$32,207 thousand** at July 26, 2025, with a total debt outstanding from capital pledges of **$946 thousand**[33](index=33&type=chunk) [Labor](index=5&type=section&id=LABOR) As of July 26, 2025, Village Super Market employed approximately 7,200 persons, with a significant portion covered by collective bargaining agreements - As of July 26, 2025, the Company employed approximately **7,200 persons**, with about **70%** working part-time[35](index=35&type=chunk) - Approximately **91%** of employees are covered by collective bargaining agreements, with contracts expiring between March 2025 and June 2028. About **28%** of associates are represented by unions with contracts expiring within one year[35](index=35&type=chunk)[36](index=36&type=chunk) [Seasonality](index=6&type=section&id=SEASONALITY) The majority of the Company's revenues are not seasonal, but tend to be higher during major holidays throughout the year - The majority of the Company's revenues are not seasonal, but tend to be higher during major holidays throughout the year[37](index=37&type=chunk) [Regulatory Environment](index=6&type=section&id=REGULATORY%20ENVIRONMENT) The Company's business requires various state and federal licenses and registrations, which obligate adherence to rules and regulations - The Company's business requires various state and federal licenses and registrations, which obligate adherence to rules and regulations. The Company has not experienced material difficulties in obtaining or retaining these[38](index=38&type=chunk) [Competition](index=6&type=section&id=COMPETITION) The supermarket business is highly competitive with narrow profit margins, facing competition from various retail formats - The supermarket business is highly competitive with narrow profit margins, facing competition from national, regional, and local supermarket chains, as well as warehouse clubs, supercenters, drug stores, and online retailers[39](index=39&type=chunk) - Competition is based on price, store location, convenience, promotion, product assortment, quality, and service. Some competitors possess greater financial resources, lower merchandise acquisition costs, and lower operating expenses[39](index=39&type=chunk) [Available Information](index=6&type=section&id=AVAILABLE%20INFORMATION) Village Super Market provides access to its SEC filings and uses Wakefern's customer-focused websites for public interaction - As a Wakefern cooperative member, Village uses Wakefern's customer-focused websites (shoprite.com, gourmetgarage.com, fairwaymarket.com) for customer and prospective employee interaction, which do not contain company-specific financial information[40](index=40&type=chunk) - Paper copies of SEC filings (10-K, 10-Q, 8-K, press releases) are available free upon shareholder request, and electronic copies can be found at sec.gov[41](index=41&type=chunk) [ITEM 1A. RISK FACTORS](index=6&type=section&id=ITEM%201A.%20RISK%20FACTORS) This section is marked as 'Not applicable' in the report, indicating that the company does not have specific risk factors to disclose under this item - The company states that Item 1A, Risk Factors, is not applicable[42](index=42&type=chunk) [ITEM 1B. UNRESOLVED STAFF COMMENTS](index=6&type=section&id=ITEM%201B.%20UNRESOLVED%20STAFF%20COMMENTS) This section is marked as 'Not applicable' in the report, indicating no unresolved comments from the SEC staff - The company states that Item 1B, Unresolved Staff Comments, is not applicable[43](index=43&type=chunk) [ITEM 2. PROPERTIES](index=6&type=section&id=ITEM%2

Core Insights - Village Super Market, Inc. reported a 3.7% increase in sales for the fourth quarter of fiscal 2025, reaching $599.7 million compared to $578.2 million in the same period last year, driven by a 1.6% increase in same store sales and the opening of a new store in Watchung, NJ [4][8] - The company's net income for the fourth quarter was $15.5 million, a slight increase of 1% from $15.4 million in the previous year, while adjusted net income decreased by 8% to $15.6 million [8][21] - Year-to-date sales for fiscal 2025 were $2.321 billion, up from $2.237 billion in the prior year, with same store sales increasing by 2.1% [11][12] Fourth Quarter Highlights - Sales for the fourth quarter were $599.7 million, up from $578.2 million, attributed to a 1.6% increase in same store sales and the opening of a new store [4] - Gross profit margin decreased to 28.17% from 29.34% due to various factors including increased promotional spending and cost inflation [5][21] - Operating and administrative expenses as a percentage of sales decreased to 23.11% from 24.20%, primarily due to lower employee costs and reduced advertising spending [6][21] Year-To-Date Fiscal 2025 Highlights - Total sales for the year were $2.321 billion, an increase of 3.8% from the previous year, with same store sales rising by 2.1% [11] - Gross profit margin for the year decreased slightly to 28.57% from 28.70%, impacted by higher promotional spending and an unfavorable product mix [12] - Adjusted operating and administrative expenses as a percentage of sales decreased to 23.95% from 24.30%, reflecting lower employee costs and reduced facility insurance costs [13] Financial Performance - Net income for the year increased by 12% to $56.4 million compared to $50.5 million in the prior year-to-date period [8] - Adjusted net income for the year was $56.9 million, an increase of 8% from $52.6 million in the previous year [8] - The effective income tax rate increased to 31.1% from 30.6% due to changes in state tax rates [17]

Group 1 - The article discusses the expertise of a research firm focused on the U.S. restaurant industry, covering various segments from quick-service to fine dining [1] - The firm employs advanced financial modeling and sector-specific KPIs to identify hidden value in public equities, particularly in micro and small-cap companies [1] - The analyst has a strong academic background, holding an MBA in Controllership and Accounting Forensics, and has specialized training in valuation and financial modeling [1] Group 2 - The research has been featured on multiple platforms, indicating a broad recognition within the investment community [1] - The firm also covers related sectors such as consumer discretionary, food & beverage, and casinos & gaming, showcasing a diverse analytical approach [1]

Group 1 - The article discusses the expertise of a research firm focused on the U.S. restaurant industry, covering various segments from quick-service to fine dining [1] - The firm employs advanced financial modeling and sector-specific KPIs to identify hidden value in public equities, particularly in micro and small-cap companies [1] - The analyst has a strong academic background, holding an MBA in Controllership and Accounting Forensics, and has specialized training in valuation and financial modeling [1] Group 2 - The research has been featured on multiple platforms, indicating a broad reach and recognition in the industry [1] - The firm also covers related sectors such as consumer discretionary, food & beverage, and casinos & gaming, showcasing a diverse analytical approach [1]

Economic Context - Current economic conditions are characterized as "stagflation-lite," indicating slowing growth alongside inflation, although unemployment remains relatively stable [1] - The impact of tariffs on prices has not fully materialized and may be temporary [1] Defensive Investment Opportunities - Two small-cap food companies are highlighted as defensive plays that are likely to withstand the stagflation environment due to the non-discretionary nature of food products [2] Village Super Market, Inc. (VLGEA) - Operates 34 supermarkets under ShopRite and Fairway brands across several states and is the second-largest member of Wakefern Food Corporation [3] - The company is investing $75 million in capital expenditures for fiscal 2025 to upgrade and expand its supermarket chain, including new store constructions [4] - For the fiscal third quarter, VLGEA reported earnings per share of 75 cents, up from 60 cents a year earlier, with sales increasing 3.2% year over year to $563.7 million [5] - Net income rose 24% to $11.2 million, with adjusted net income increasing 21% to $11.6 million [5] - The stock is trading at 0.19X trailing 12-month EV/sales, significantly lower than the Zacks sub-industry average of 1.15X [6] - The stock's trailing 12-month EV/EBITDA is 4.08X, compared to 18.37X for the Zacks sub-industry [7] Armanino Foods of Distinction, Inc. (AMNF) - Engaged in producing and marketing upscale frozen and refrigerated food products, including pesto sauces and stuffed pasta [8] - For the second quarter ended June 30, 2025, AMNF reported net sales of $19.97 million, a 14% increase from the previous year, with gross profit rising 26% to $9.11 million [9] - Net income climbed 27% to $4.85 million, resulting in earnings per share of 15.44 cents, a 30% increase from 11.86 cents a year earlier [9] - The company has $4.65 million authorized for future buybacks and offers a dividend yield of 1.6% [10] - The stock is trading at 3.81X trailing 12-month EV/sales, higher than the Zacks sub-industry average of 1.57X [10] - The trailing 12-month EV/EBITDA for AMNF is 12.45X, comparable to the Zacks sub-industry average of 12.19X [11] - Both companies are characterized as "steady eddies" with moderate ongoing appreciation potential and currently hold a Zacks Outperform rating [11]

Core Insights - Crude Value Insights provides an investment service and community focused on the oil and natural gas sectors, emphasizing cash flow generation and growth potential [1] - Subscribers benefit from a model account featuring over 50 stocks, detailed cash flow analyses of exploration and production (E&P) firms, and live discussions about the sector [1] Subscription Offer - A two-week free trial is available for new subscribers, allowing them to explore the oil and gas investment opportunities [2]

Group 1 - Crude Value Insights provides an investment service and community focused on the oil and natural gas sector [1] - The service emphasizes cash flow and identifies companies that generate it, highlighting their value and growth prospects [1] - Subscribers have access to a model account with over 50 stocks, detailed cash flow analyses of exploration and production firms, and live discussions about the sector [1] Group 2 - A two-week free trial is available for new subscribers, promoting engagement with the oil and gas market [2]