Weis Markets, Inc. (WMK) Bundle
A Brief History of Weis Markets, Inc.
Company Overview
Weis Markets, Inc., founded in 1912, is a regional supermarket chain headquartered in Sunbury, Pennsylvania. As of 2024, it operates over 200 stores across Pennsylvania, Maryland, New Jersey, New York, and West Virginia.
Financial Performance
For the thirteen weeks ended September 28, 2024, Weis Markets reported net sales of $1.186 billion, reflecting a year-over-year increase of 2.2% from $1.160 billion in the prior year. In the thirty-nine weeks ended September 28, 2024, net sales reached $3.547 billion, up 1.8% from $3.484 billion in the same period of 2023.
| Period | Net Sales (in billions) | Year-over-Year Change |
|---|---|---|
| 13 Weeks Ended September 28, 2024 | $1.186 | 2.2% |
| 39 Weeks Ended September 28, 2024 | $3.547 | 1.8% |
Profitability Metrics
Gross profit for the thirteen weeks ended September 28, 2024, was $291.1 million, yielding a gross profit margin of 24.5%. For the thirty-nine weeks, gross profit totaled $876.9 million with a margin of 24.7%.
| Period | Gross Profit (in millions) | Gross Profit Margin |
|---|---|---|
| 13 Weeks Ended September 28, 2024 | $291.1 | 24.5% |
| 39 Weeks Ended September 28, 2024 | $876.9 | 24.7% |
Net Income
Net income for the thirteen weeks ended September 28, 2024, was $25.8 million, compared to $23.2 million in the same period of 2023. For the thirty-nine weeks, net income was $75.3 million, down from $83.3 million in 2023.
| Period | Net Income (in millions) | Year-over-Year Change |
|---|---|---|
| 13 Weeks Ended September 28, 2024 | $25.8 | 11.3% |
| 39 Weeks Ended September 28, 2024 | $75.3 | -9.7% |
Cash Flow and Investments
Net cash provided by operating activities for the thirty-nine weeks ended September 28, 2024, was $100.3 million, a significant increase from $43.1 million in the previous year. The company spent $107.9 million on property and equipment during the same period.
| Cash Flow Activity | 2024 (in millions) | 2023 (in millions) |
|---|---|---|
| Cash from Operating Activities | $100.3 | $43.1 |
| Cash Used for Investing Activities | $107.9 | $75.6 |
Market Position and Strategy
Weis Markets remains focused on enhancing its market position through strategic investments in technology, store renovations, and expanding its online presence. The company anticipates overall product costs to increase due to inflationary pressures in the food retail industry.
Stock Performance
As of 2024, Weis Markets' stock has shown resilience in a competitive market, maintaining a consistent dividend payout. The company paid dividends totaling $27.4 million over the first thirty-nine weeks of 2024, consistent with the prior year.
| Dividend Activity | 2024 (in millions) | 2023 (in millions) |
|---|---|---|
| Dividends Paid | $27.4 | $27.4 |
A Who Owns Weis Markets, Inc. (WMK)
Ownership Structure
As of 2024, Weis Markets, Inc. (WMK) has a total of 33,047,807 shares issued. The shares are listed on the NASDAQ under the ticker symbol WMK. The significant shareholders include both institutional investors and individual insiders.
Major Shareholders
| Shareholder Type | Number of Shares Owned | Percentage of Total Shares |
|---|---|---|
| Institutional Investors | 12,000,000 | 36.3% |
| Insider Ownership | 6,149,364 | 18.6% |
| Public Float | 14,898,443 | 45.1% |
Board of Directors
The Board of Directors of Weis Markets is composed of various members who hold significant influence over the company's strategic direction. Key members include:
- Jonathan Weis - Chairman and CEO
- Brian J. Weis - President
- Other board members with various backgrounds in retail and finance
Recent Financial Performance
For the thirteen weeks ended September 28, 2024, Weis Markets reported:
- Total Net Sales: $1.186 billion
- Net Income: $25.84 million
- Earnings Per Share: $0.96
For the thirty-nine weeks ended September 28, 2024, the company reported:
- Total Net Sales: $3.547 billion
- Net Income: $75.26 million
- Earnings Per Share: $2.80
Dividends
Weis Markets has consistently paid dividends, with a declared quarterly dividend of $0.34 per share, payable on November 26, 2024, to shareholders of record on November 12, 2024.
Market Performance
As of September 28, 2024, Weis Markets’ stock performance has shown resilience, with a year-to-date increase of approximately 11%. The company continues to navigate challenges in the retail sector, including inflationary pressures.
Recent Developments
In September 2024, Weis Markets announced plans to acquire two Sunnyway Foods stores to expand its presence in Pennsylvania, expected to complete in the fourth quarter of 2024.
Weis Markets, Inc. (WMK) Mission Statement
Company Overview
Weis Markets, Inc. operates as a retail supermarket chain in the United States. As of 2024, the company has a strong presence in the grocery sector, focusing on customer service and quality products.
Mission Statement
The mission of Weis Markets, Inc. is to provide quality products at competitive prices while ensuring exceptional customer service. The company emphasizes community engagement and sustainability in its operations.
Financial Performance
For the thirteen weeks ended September 28, 2024, Weis Markets reported net sales of $1.186 billion, an increase of 2.2% compared to $1.160 billion for the same period in 2023. For the thirty-nine weeks ended September 28, 2024, total net sales were $3.547 billion, up from $3.484 billion in the prior year, reflecting a 1.8% increase.
| Period | Net Sales (in thousands) | Percentage Change |
|---|---|---|
| 13 Weeks Ended September 28, 2024 | $1,186,232 | 2.2% |
| 13 Weeks Ended September 30, 2023 | $1,160,306 | - |
| 39 Weeks Ended September 28, 2024 | $3,546,602 | 1.8% |
| 39 Weeks Ended September 30, 2023 | $3,483,975 | - |
Gross Profit and Operating Expenses
Weis Markets achieved a gross profit of $291.1 million for the thirteen weeks ended September 28, 2024, with a gross profit margin of 24.5%. In comparison, the gross profit for the same period in 2023 was $285.7 million, with a margin of 24.6%.
Operating, general, and administrative expenses increased to $261.6 million, representing 22.1% of net sales for the thirteen weeks ended September 28, 2024, compared to $256.1 million or 22.1% for the same period in 2023.
| Period | Gross Profit (in thousands) | Gross Profit Margin | Operating Expenses (in thousands) | Operating Expenses as Percentage of Sales |
|---|---|---|---|---|
| 13 Weeks Ended September 28, 2024 | $291,140 | 24.5% | $261,582 | 22.1% |
| 13 Weeks Ended September 30, 2023 | $285,723 | 24.6% | $256,050 | 22.1% |
Net Income and Earnings Per Share
The net income for Weis Markets for the thirteen weeks ended September 28, 2024, was $25.8 million, a rise from $23.2 million in the previous year, marking an 11.3% increase. The earnings per share (EPS) for this period rose to $0.96 from $0.86.
| Period | Net Income (in thousands) | EPS | Percentage Change |
|---|---|---|---|
| 13 Weeks Ended September 28, 2024 | $25,840 | $0.96 | 11.3% |
| 13 Weeks Ended September 30, 2023 | $23,226 | $0.86 | - |
Market Trends and Economic Factors
Weis Markets continues to navigate the challenges posed by inflation in the retail sector. The company reported retail price inflation in grocery and pharmacy categories, which influenced sales growth. The Seasonally Adjusted Food-at-Home Consumer Price Index increased by 0.7% for the thirteen weeks ended September 28, 2024, indicating rising costs in the grocery sector.
Conclusion
Weis Markets remains committed to its mission of providing quality products and excellent service while adapting to the evolving market landscape.
How Weis Markets, Inc. (WMK) Works
Company Overview
Weis Markets, Inc. operates as a supermarket chain offering grocery, pharmacy, and fuel products. The company has established a significant presence in the Mid-Atlantic region of the United States, focusing on providing quality products and services to its customers.
Financial Performance
As of September 28, 2024, Weis Markets reported the following financial performance metrics:
| Metric | Thirteen Weeks Ended September 28, 2024 | Thirteen Weeks Ended September 30, 2023 | Thirty-Nine Weeks Ended September 28, 2024 | Thirty-Nine Weeks Ended September 30, 2023 |
|---|---|---|---|---|
| Net Sales | $1,186,232,000 | $1,160,306,000 | $3,546,602,000 | $3,483,975,000 |
| Cost of Sales | $895,092,000 | $874,583,000 | $2,669,728,000 | $2,613,417,000 |
| Gross Profit | $291,140,000 | $285,723,000 | $876,874,000 | $870,558,000 |
| Net Income | $25,840,000 | $23,226,000 | $75,263,000 | $83,305,000 |
| Earnings per Share (Basic and Diluted) | $0.96 | $0.86 | $2.80 | $3.10 |
Sales Breakdown
For the thirteen weeks ended September 28, 2024, the breakdown of net sales by product category was as follows:
| Category | Net Sales (in thousands) | Percentage of Total Sales |
|---|---|---|
| Grocery | $968,575 | 81.7% |
| Pharmacy | $155,236 | 13.1% |
| Fuel | $60,859 | 5.1% |
| Manufacturing | $1,562 | 0.1% |
Operating Expenses
Operating, general and administrative expenses for the thirteen weeks ended September 28, 2024, totaled $261,582,000, compared to $256,050,000 in the same period of 2023. This represents a 2.2% increase year-over-year.
Cash Flow Analysis
In the first thirty-nine weeks of 2024, cash flows from operating activities were recorded at $100,324,000, a significant increase from $43,125,000 in the prior year. This increase is primarily attributed to improved operating efficiencies and management of working capital.
Market Conditions
The retail grocery sector has experienced inflationary pressures, particularly in grocery and pharmacy categories. The company anticipates further increases in product costs driven by ongoing inflationary trends in the food retail industry.
Debt and Credit Facilities
As of September 28, 2024, Weis Markets had a revolving credit agreement with Wells Fargo Bank, N.A., providing for an unsecured revolving credit facility with a principal amount of up to $30 million. The availability under the credit agreement was $13.2 million, net of $16.8 million in letters of credit.
Investment Performance
Weis Markets recognized investment income of $7,848,000 for the thirteen weeks ended September 28, 2024, up from $1,409,000 in the same period of 2023. This reflects a significant increase in investment performance, contributing positively to the overall financial results.
Shareholder Equity
As of September 28, 2024, total shareholders' equity was $1,422,728,000, compared to $1,374,337,000 at the end of the previous year. This growth in equity reflects retained earnings and the company's commitment to shareholder returns.
Conclusion
Weis Markets continues to navigate a competitive retail landscape, focusing on operational efficiencies and strategic investments to drive growth and enhance shareholder value.
How Weis Markets, Inc. (WMK) Makes Money
Revenue Sources
Weis Markets, Inc. generates revenue primarily through the sale of grocery products, pharmacy services, fuel, and manufacturing activities. For the thirteen weeks ended September 28, 2024, the total net sales were reported as follows:
| Product Category | Net Sales (in thousands) | Percentage of Total Sales |
|---|---|---|
| Grocery | $968,575 | 81.7% |
| Pharmacy | $155,236 | 13.1% |
| Fuel | $60,859 | 5.1% |
| Manufacturing | $1,562 | 0.1% |
| Total | $1,186,232 | 100.0% |
Sales Performance
In the thirty-nine weeks ended September 28, 2024, total net sales increased to $3,546,602, reflecting a 1.8% growth compared to the previous year. The breakdown of sales for this period is as follows:
| Product Category | Net Sales (in thousands) | Percentage of Total Sales |
|---|---|---|
| Grocery | $2,917,024 | 82.3% |
| Pharmacy | $446,677 | 12.6% |
| Fuel | $178,577 | 5.0% |
| Manufacturing | $4,324 | 0.1% |
| Total | $3,546,602 | 100.0% |
Cost of Sales and Gross Profit
The cost of sales for the thirteen weeks ended September 28, 2024, was $895,092, which represents a 2.3% increase from the previous year. The gross profit for this period was $291,140, yielding a gross profit margin of 24.5%, slightly down from 24.6% in the same period of 2023.
For the thirty-nine weeks ended September 28, 2024, the cost of sales was $2,669,728 with a gross profit of $876,874 and a gross profit margin of 24.7%.
Operating Expenses
Operating, general and administrative expenses (O, G & A) for the thirteen weeks ended September 28, 2024, amounted to $261,582, representing 22.1% of net sales. This is consistent with the previous year's figure of 22.1% for the same period. For the thirty-nine weeks, O, G & A expenses totaled $787,465, or 22.2% of net sales.
Net Income and Earnings Per Share
Weis Markets reported a net income of $25,840 for the thirteen weeks ended September 28, 2024, compared to $23,226 in the same period of 2023, reflecting an 11.3% increase. The net income for the thirty-nine weeks was $75,263, down from $83,305 in the prior year. Basic and diluted earnings per share for the thirteen weeks were $0.96, up from $0.86 the previous year, while for the thirty-nine weeks, earnings per share were $2.80, down from $3.10.
Investment Income
In the thirteen weeks ended September 28, 2024, Weis Markets recognized an investment income of $7,848, a substantial increase from $1,409 in the same quarter of 2023. For the thirty-nine weeks, investment income was $17,461, compared to $7,715 in the previous year.
Market Trends and Challenges
The company faces challenges due to fluctuating retail prices and competition in the grocery sector. The effective income tax rate for the thirty-nine weeks ended September 28, 2024, was 27.2%, slightly higher than the previous year's rate of 27.1%.
Cash Flows and Liquidity
Net cash provided by operating activities was $100,324 for the first thirty-nine weeks of 2024, significantly higher than $43,125 in the same period of 2023. Cash used in investing activities amounted to $107,347, while cash used in financing activities remained constant at $27,436 for both years.
Conclusion on Financial Strategy
Weis Markets continues to adapt its financial strategy in response to market conditions, focusing on sustaining sales growth while managing operational costs effectively.
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Resources:
- Weis Markets, Inc. (WMK) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Weis Markets, Inc. (WMK)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Weis Markets, Inc. (WMK)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.