Group 1 - Costco Executive Members in the US and Canada will receive a $10 monthly credit towards delivery orders starting June 30, 2025, applicable on orders of $150 or more [1][3] - The monthly credit is automatically applied to qualifying orders placed through sameday.costco.com, sameday.costco.ca, or Instacart, and is exclusive to Executive Members [3][4] - Instacart has been partnering with Costco for same-day delivery since 2017, with an expansion of services in 2021 to include Costco's same-day delivery website [4] Group 2 - Instacart operates as a leading grocery technology company in North America, partnering with over 1,800 retailers to facilitate online shopping and delivery services [6] - The Instacart platform supports more than 100,000 stores across North America, enabling millions of consumers to access groceries from their preferred retailers [6] - Instacart provides a suite of technology products and services to enhance e-commerce experiences for retailers, including advertising services and insights [6]

Core Insights - Amazon is reorganizing Whole Foods to integrate it more closely with its grocery business under new leadership, aiming to revitalize its grocery strategy [1][3] - The restructuring includes a new leadership team and aligning Whole Foods corporate staff with Amazon's employee programs, which will be implemented over the next 12 months [2][12] Business Strategy - The previous structure was criticized for not leveraging the full potential of Amazon's resources and talent, leading to inefficiencies and missed opportunities [3][11] - The new approach aims to streamline operations and create a unified employee experience to drive faster growth [11][13] Market Position - Despite a 40% sales growth since the acquisition in 2017, Amazon and Whole Foods hold only 1.4% and 1.6% of the US grocery market, respectively, significantly trailing behind competitors like Walmart and Kroger [4][9] - Amazon's grocery sales from physical stores reached $5.5 billion in the first quarter, with online grocery sales growing 10.1% last year, down from 20.6% the previous year [10] Leadership Changes - Jason Buechel, who became Whole Foods CEO in 2022, is now overseeing all of Amazon's grocery business and has introduced a new leadership team to refine the company's structure [6][14] - The new leadership team includes executives from both Whole Foods and Amazon, tasked with defining the new operational framework [14][15] Financial Adjustments - As part of the transition, Whole Foods will adopt Amazon's compensation model, although overall pay is expected to remain largely unchanged [12] - The company is looking to cut costs and has not committed to maintaining employee discounts during the transition [17][18]

Core Insights - Kroger is promoting various ways for customers to celebrate Father's Day, emphasizing acts of kindness and thoughtful gifts for dads [2][3] Group 1: Father's Day Promotions - Kroger encourages customers to surprise dads with special treats and experiences leading up to Father's Day, highlighting the importance of appreciation beyond just one day [2] - The company offers a range of ideas including grilling meals, gifting donuts, and providing gourmet hot sauce and beverages [6] - Customers can find inspiration for Father's Day gifts and recipes on Kroger's blog, The Fresh Lane, which features various grilling recipes and party essentials [3][6] Group 2: Pricing and Offers - Kroger is implementing lower prices on over 1,000 items in-store, alongside everyday low prices and more than $600 in digital coupons available weekly [3] - The company promotes its Fresh & Quality Guarantees, ensuring customers do not have to compromise on quality for lower prices [3] Group 3: Company Overview - Kroger operates with a mission to "Feed the Human Spirit," serving over 11 million customers daily through various retail food stores and e-commerce [4] - The company employs more than 400,000 associates and is committed to creating communities with ZeroHungerZeroWaste [4]

Core Insights - Meituan reported 1Q25 revenue of RMB86.6 billion, an 18% year-over-year increase, exceeding both internal forecasts and Bloomberg consensus estimates by 1% [1] - Adjusted net profit reached RMB10.9 billion, up 46% year-over-year, and was 12-13% higher than forecasts [1] - The core local commerce (CLC) segment generated RMB64.3 billion in revenue and RMB13.5 billion in operating profit, reflecting 18% and 39% year-over-year growth, respectively [2] Financial Performance - The operating profit for the CLC segment was 10% better than consensus estimates, primarily driven by the food delivery (FD) business due to user subsidy optimization [1] - Revenue from new initiatives was RMB22.2 billion, up 19% year-over-year, with an operating loss of RMB2.3 billion, which narrowed from RMB2.8 billion in 1Q24 [3] - The company expects solid revenue and earnings growth in the in-store hotel & travel (ISHT) segment to mitigate investment impacts in the short term [2] Strategic Initiatives - Meituan is actively responding to increasing competition in the food delivery and instant retail markets, aiming to maintain market share [2] - The company is committed to investing in international expansion to drive long-term revenue and earnings growth [1] - For 2Q25, revenue for new initiatives is estimated to grow by 21.5% year-over-year, driven by grocery retail and overseas FD business [3] Forecast Adjustments - Revenue and adjusted net profit forecasts for 2025-2027 have been lowered by 1-2% and 11-21%, respectively, to account for additional investments in the FD business and overseas expansion [1] - The DCF-based target price was reduced by 9% to HK$181.6, translating into a 25x 2025E adjusted PE [1]

Core Insights - Kroger is promoting affordable beauty products for summer, emphasizing customer favorites and new items to enhance beauty routines [2][12] - The company highlights a range of skincare and makeup products that cater to various customer needs, including sunscreen, moisturizers, and makeup essentials [6][9] Product Offerings - Kroger offers a selection of cleansers suitable for summer, such as COSRX Low pH Good Morning Gel Cleanser and Cetaphil Gentle Skin Cleanser [3] - Lightweight moisturizers like Vanicream Daily Facial Moisturizer and Kroger® Hydrating Facial Moisture Water Gel are recommended for summer use [5] - The Kroger® Gimme Some Glow Sunscreen Lotion SPF 40 is highlighted for its illuminating properties and water resistance [6] Makeup Recommendations - The e.l.f. Power Grip Primer is suggested to enhance makeup longevity, while MCoBeauty's Cheek & Lip Tint adds color to the routine [7][8] - Exclusive products from the Australian brand Nude by Nature are available at Kroger, including bronzers and lip products [9] - The final touch for eye makeup includes the Pretty Savvy™ Comfort Grip Eyelash Curler and L'Oreal Paris Paradise Big Deal Mascara [10] Customer Engagement - Kroger emphasizes its commitment to affordability, with over 1,000 items priced lower and more than $600 in digital coupons available weekly [12] - The company aims to provide high-quality products without compromising on price, reinforcing its Fresh & Quality Guarantees [12] Company Overview - Kroger operates with a mission to "Feed the Human Spirit," serving over 11 million customers daily through various retail formats and e-commerce [13]

Investment Rating - The report maintains a "BUY" rating for Meituan, with a target price of HK$181.6, which reflects a 40.3% upside from the current price of HK$129.4 [2][10]. Core Insights - Meituan's 1Q25 results showed revenue of RMB86.6 billion, an 18% year-over-year increase, and adjusted net profit of RMB10.9 billion, up 46% year-over-year, exceeding both forecasts and consensus estimates [1]. - The company is actively responding to increased competition in the food delivery market by optimizing user subsidies to enhance user stickiness, while also committing to international expansion for long-term growth [1][10]. - Revenue from the core local commerce (CLC) segment reached RMB64.3 billion, up 18% year-over-year, with operating profit of RMB13.5 billion, which was 10% better than consensus estimates [1][8]. Financial Performance Summary - For FY25E, revenue is projected at RMB386.1 billion, with a year-over-year growth of 14.4%, while adjusted net profit is expected to be RMB39.3 billion, reflecting a decline of 10.3% year-over-year [7][9]. - The CLC segment is forecasted to generate revenue of RMB66.7 billion in 2Q25E, indicating a 10% year-over-year growth [1]. - New initiatives generated revenue of RMB22.2 billion in 1Q25, up 19% year-over-year, with an operating loss of RMB2.3 billion, which is an improvement from the previous year [1][8]. Forecast Revisions - The revenue and adjusted net profit forecasts for 2025-2027 have been lowered by 1-2% and 11-21% respectively, due to increased investments in the food delivery business and international expansion [1][9]. - The target price was cut by 9% to HK$181.6, translating into a 25x adjusted PE for 2025E [10][12]. Share Performance - The market capitalization of Meituan is approximately HK$792.6 billion, with a 52-week high of HK$213.40 and a low of HK$102.10 [2][3]. - Over the past month, the stock has seen a 1.4% increase, but a decline of 25.7% over the past three months [4]. Shareholding Structure - Major shareholders include Crown Holdings Asia Limited with 8.1% and BlackRock with 5.3% [3].

Core Points - The Kroger Co. has been awarded the 2025 Gold Bell Seal for Workplace Mental Health, recognizing its commitment to creating a mentally healthy workplace for associates [1][2][3] - The Bell Seal program, initiated by Mental Health America (MHA), is the first workplace certification of its kind, aimed at employers who prioritize mental health [2][5] - Kroger achieved a perfect score of 100% in the holistic wellness at work category, reflecting its extensive offerings and programs to support mental health and promote a positive workplace culture [4] Company Commitment - Kroger emphasizes a shared commitment to its values, which guide its service to customers, community support, and treatment of associates [4] - Only 40% of employers meet the Bell Seal standards, highlighting Kroger's dedication to associate well-being and holistic support [4] Background Information - Mental Health America (MHA) is a leading nonprofit organization focused on mental health, having introduced the Bell Seal in 2019 to recognize companies that implement supportive mental health policies [5] - Kroger operates with over 400,000 associates and serves more than 11 million customers daily through various retail and e-commerce platforms [7]

Core Viewpoint - Grocery retailers are showing resilience amid economic challenges, with Sprouts Farmers Market Inc. and The Kroger Co. attracting investor interest due to solid fundamentals and strategic initiatives [1] Sprouts Farmers Market Inc. (SFM) - SFM has grown its presence in the natural and organic grocery segment, reporting a 19% year-over-year increase in total sales to $2.2 billion and an 11.7% rise in comparable store sales [2] - The target market for SFM is estimated at $290 billion of the $1.6 trillion spent on food at home, with specialty offerings gaining market share [3] - E-commerce sales increased by 28% year over year, constituting 15% of total revenues, with plans to open at least 35 new stores in 2025 [4] - SFM generated $299 million in operating cash flow, allowing for $49 million in capital expenditures and $219 million returned to shareholders through buybacks [5] - Management has guided total sales growth of 12-14% and comparable store sales growth of 5.5-7.5% for 2025, with expected earnings per share of $4.94–$5.10 [6] The Kroger Co. (KR) - KR maintains a customer-centric strategy with over 90% of households purchasing its private-label products, launching more than 900 items in 2024 [7] - Digital sales surpassed $13 billion in fiscal 2024, driven by initiatives like the Boost membership program and investments in automation [8] - Alternative profit businesses generated $1.35 billion in operating profit in fiscal 2024, supported by a 17% increase in media revenues [9] - KR faced challenges from lower fuel sales and a significant increase in debt following the termination of the Albertsons merger, with projected net interest expenses rising to $650–$675 million in fiscal 2025 [11] Comparative Analysis - The Zacks Consensus Estimate for SFM's EPS has increased, suggesting year-over-year growth rates of 35.5% and 12% for the current and next fiscal years, respectively [12] - KR's EPS estimates have remained stable, indicating year-over-year growth rates of 6% and 8.5% for the current and next fiscal years [13] - Year-to-date stock performance shows SFM advancing 29.6% compared to KR's 12.7% growth [14] - SFM's forward P/E ratio is 30.98, while KR's is 14.16, indicating differing valuations [15] - SFM is viewed as a stronger investment option due to its strategic focus on growth and operational efficiency, while KR faces pressures from increased debt [16]

Core Insights - Lowe's Companies, Inc. reported first-quarter fiscal 2025 results with both earnings and net sales surpassing the Zacks Consensus Estimate, although both metrics showed a year-over-year decline [1][3] Financial Performance - Quarterly earnings were $2.92 per share, exceeding the Zacks Consensus Estimate of $2.88, but down 4.6% from $3.06 per share in the same period last year [3] - Net sales reached $20,930 million, slightly above the consensus estimate of $20,924 million, but down 2% year over year [3] - Comparable sales declined by 1.7%, influenced by adverse weather conditions, although there was mid-single-digit growth in Pro and online comparable sales [4] Margin and Cost Analysis - Gross profit decreased by 1.5% year over year to $6.99 billion, while gross margin expanded by 20 basis points to 33.4% [5] - Selling, general and administrative expenses totaled $4.05 billion, up 0.9% year over year, with this metric increasing as a percentage of net sales to 19.3% [5] - Operating income decreased by 6% to $2.49 billion, with the operating margin decreasing by 50 basis points to 11.9% [6] Financial Health - The company ended the quarter with cash and cash equivalents of $3.05 billion and long-term debt of $30.5 billion [7] - Cash flow from operations for the first three months of fiscal 2025 was $3.38 billion, with a dividend payment of $645 million [8] Future Outlook - Management anticipates total sales between $83.5 billion and $84.5 billion for fiscal 2025, with comparable sales expected to be flat to up 1% [11] - Projected operating margin is between 12.3% and 12.4%, with earnings per share expected in the range of $12.15 to $12.40 [11] - Capital expenditures are anticipated to be approximately $2.5 billion for fiscal 2025 [11] Stock Performance - Lowe's shares have declined by 2.5% over the past three months, compared to a 3.1% decline in the industry [12]

Core Insights - Kroger is celebrating Memorial Day by offering a backyard grilling bundle priced at $3.50 per person, designed to serve 16 people [1] - The company emphasizes its commitment to honoring military service members and has hired over 50,000 veterans in the past decade [2] - Kroger is the largest cumulative donor to the United Service Organizations (USO) in its 82-year history [2] Product Offering - The grilling bundle includes essential items for a Memorial Day gathering, ensuring affordability and convenience for families [3] - Kroger is also providing lower prices on over 1,000 items in-store and more than $600 in digital coupons available weekly [3] - The company guarantees high quality through its Fresh & Quality Guarantees, ensuring customers do not have to compromise on quality for low prices [3] Company Overview - Kroger operates with over 400,000 associates serving more than 11 million customers daily through various retail formats and e-commerce [4] - The company's mission is to "Feed the Human Spirit™" and it aims to create ZeroHungerZeroWaste communities [4]