Group 1 - Village Super Market, Inc. (VLGEA) operates under the ShopRite, Fairway, and Gourmet Garage brands across four states, particularly New Jersey, and is highlighted as a strong investment choice among regional, family-owned grocers [1] - The research firm Goulart's Restaurant Stocks focuses on the U.S. restaurant industry, covering various segments from quick-service to fine dining, and emphasizes uncovering hidden value in public equities, especially in micro and small caps [1] - The analyst has a robust background in finance and business management, holding an MBA in Controllership and Accounting Forensics, and has experience in valuation, financial modeling, and restaurant operations [1]

Company Overview - Village Super Market, Inc. operates under the ShopRite, Fairway, and Gourmet Garage brands across four states, primarily New Jersey, and is highlighted as a leading choice among regional, family-owned grocers [1]. Analyst Background - The equity analyst leading the research has 10 years of experience in investment banking, focusing on thematic research and valuation in the U.S. restaurant industry, covering various sectors including consumer discretionary, food & beverage, and gaming [1]. Research Focus - The research firm, Goulart's Restaurant Stocks, specializes in uncovering hidden value in public equities, particularly in micro and small-cap companies that are often overlooked by mainstream analysts [1]. Educational Credentials - The analyst holds an MBA in Controllership and Accounting Forensics, a Bachelor's in Business Administration, and has pursued specialized training in valuation, financial modeling, and restaurant operations [1].

Core Insights - Village Super Market, Inc. (VLGEA) reported a decline in earnings per share for Q1 2026, with a figure of 81 cents compared to 86 cents in the prior year [1] - The company's stock has seen a 0.3% dip since the earnings report, contrasting with a 0.9% increase in the S&P 500 index during the same period [1] Financial Performance - Sales increased by 4.5% to $582.6 million from $557.7 million year-over-year, driven by a 2.5% rise in same-store sales and a new store opening in Watchung, NJ [2] - Net income fell by 6% to $12 million from $12.8 million a year ago, while adjusted net income declined by 2% to $12.5 million [2] Profitability and Margins - Gross profit slightly improved to $165 million from $161.9 million, but gross margin decreased to 28.3% from 29% due to lower patronage dividends and weaker departmental margins [3] - Operating and administrative expenses rose to $141.4 million from $137.5 million, but as a percentage of sales, they improved to 24.3% from 24.7% [4] Cost Management - Depreciation and amortization expenses increased to $8.4 million, reflecting capital investments, while interest expenses decreased due to lower outstanding debt [5] - The effective tax rate rose to 31.4% from 31.2% in the previous year, and operating income fell to $15.1 million from $16 million [6] Digital Sales and Market Position - Same-store digital sales grew by 14% year-over-year, contributing positively to overall performance despite competitive pressures from new store openings [7] - The company plans to open a new replacement ShopRite store in East Orange, NJ, in the second half of the fiscal year, with pre-opening costs of $0.4 million [9] Other Developments - A pension settlement charge of $0.3 million was recorded in the quarter due to the termination of a retirement plan, which was excluded from adjusted net income calculations [8]

Financial Performance - Sales for the 13 weeks ended October 25, 2025, were $582,593, an increase of 4.5% compared to the same period in 2024, driven by a 2.5% increase in same store sales and the opening of a new store [69]. - Gross profit as a percentage of sales decreased by 0.72% to 28.31% due to lower patronage dividends, decreased departmental gross margins, and increased promotional spending [70]. - Net income for the 13 weeks ended October 25, 2025, was $12,002, a decrease from $12,803 in the same period in 2024, while adjusted net income was $12,496, down 2% [74]. Expenses and Costs - Operating and administrative expenses as a percentage of sales decreased by 0.38% to 24.28%, with adjusted operating expenses decreasing by 0.51% [71]. - The effective income tax rate increased slightly to 31.4% from 31.2% year-over-year [74]. Capital Expenditures - The company has budgeted $75,000 for capital expenditures in fiscal 2026, including costs for a new store in East Orange, NJ, and various remodels and technology upgrades [79]. - Capital expenditures are budgeted at $75,000 for fiscal 2026, including a replacement store in East Orange, NJ, expected to open in fiscal 2026 [88]. Working Capital and Financing - Working capital increased to $31,520 at October 25, 2025, compared to $23,840 at July 26, 2025, with a working capital ratio of 1.17 [82]. - The company has a credit facility with Wells Fargo, with $65,979 available under the unsecured revolving line of credit as of October 25, 2025 [83]. - The Company has an unsecured revolving line of credit with a maximum borrowing amount of $75,000, expiring on April 30, 2030, bearing interest at SOFR plus 1.25% [94]. Interest Rate Management - As of October 25, 2025, the Company had five interest rate swaps with an aggregate initial notional value of $99,975 to hedge variable cash flows associated with variable-rate loans [96]. - The fair value of interest rate swaps recorded in Other assets is $4,737 as of October 25, 2025 [97]. - The Company holds variable rate notes receivable due from Wakefern totaling $113,315, with interest rates tied to the prime rate and SOFR [98]. - Cash and cash equivalents include $99,723 in demand deposits invested at Wakefern, exposed to interest rate changes [99]. Employee Relations - Approximately 91% of employees are covered by collective bargaining agreements, which could impact financial results if work stoppages occur [91]. Legal Matters - The Company is currently engaged in litigation with Wakefern, the impact of which on results of operations is currently uncertain [92]. Future Outlook - The Company expects same store sales to increase between 1.0% and 3.0% in fiscal 2026 [88]. - The effective income tax rate is anticipated to be in the range of 31.0% - 32.0% for fiscal 2026 [88].

Core Insights - Village Super Market, Inc. reported a sales increase of 4.5% to $582.6 million for the first quarter ended October 25, 2025, compared to $557.7 million in the same period last year, driven by a 2.5% increase in same store sales and the opening of a new store [3][9] - Net income decreased by 6% to $12.0 million from $12.8 million year-over-year, while adjusted net income fell by 2% to $12.5 million [9][16] - Gross profit margin decreased to 28.31% from 29.03% due to lower patronage dividends, decreased departmental gross margins, and increased promotional spending [4][14] Sales Performance - Sales for the quarter were $582.6 million, up from $557.7 million, attributed to a 2.5% increase in same store sales and the opening of a new store [3][9] - Same store digital sales saw a significant increase of 14% [9] Profitability Metrics - Gross profit as a percentage of sales decreased to 28.31% from 29.03%, impacted by lower patronage dividends and increased promotional spending [4][14] - Operating and administrative expenses as a percentage of sales decreased to 24.28% from 24.66%, with adjusted operating expenses at 24.15% [5][14] Expenses and Income - Operating income decreased to $15.1 million from $16.0 million year-over-year [13] - Interest expense decreased due to lower average outstanding debt balances, while interest income fell due to lower interest rates on variable rate notes [6][7] Company Overview - Village Super Market operates 34 supermarkets under the ShopRite and Fairway banners, along with three Gourmet Garage specialty markets in New York City [8]

Core Insights - The article discusses the author's background as a freelance business writer with a focus on restaurants, retailers, and food manufacturers, emphasizing long-term investment opportunities and valuation metrics [1]. Group 1: Author's Background - The author has experience writing for the Motley Fool Blogging Network and has received several editor's choice awards [1]. - The focus areas include growth opportunities and valuation metrics within the restaurant and retail sectors [1]. - The author typically seeks long-term investment opportunities, planning to hold stocks for several years [1].

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]