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SVTPerformance's Chain of Restaurants
Road Side Pub
SVTP stock pick thread.
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<blockquote data-quote="Weather Man" data-source="post: 16666575" data-attributes="member: 137766"><p>I'm trying to remember the last time a American executive just outright came out and said organized crime is affecting earnings.</p><p></p><p>Let me guess, there are a lot of Kroger stores in CA.</p><p></p><p><a href="https://seekingalpha.com/news/3738842-kroger-ceo-organized-crime-supply-chain-issues-compressed-margins" target="_blank"></a></p><p><a href="https://seekingalpha.com/news/3738842-kroger-ceo-organized-crime-supply-chain-issues-compressed-margins" target="_blank">Kroger CEO: Organized crime, supply chain issues compressed margins</a></p><ul> <li data-xf-list-type="ul">Kroger (NYSE:<a href="https://seekingalpha.com/symbol/KR" target="_blank">KR</a>) CEO Rodney McMullen said Friday that the gross margin compression that contributed to poor reception for the grocery chain's latest earnings report stemmed from supply-chain pressures and shoplifting that involved organized crime.</li> <li data-xf-list-type="ul">Speaking to CNBC, McMullen also predicted 2%-3% inflation for the rest of the year for the company's inputs. He added that the chain can pass most of the costs associated with increased commodities prices to its customers.</li> <li data-xf-list-type="ul">Kroger shares dropped more than 7% on Friday even though the company reported earnings and revenue <a href="https://seekingalpha.com/news/3738655-kroger-eps-beats-0_16-beats-on-revenue" target="_blank">that nominally topped expectations</a>.</li> <li data-xf-list-type="ul">The company's <a href="https://seekingalpha.com/pr/18467913-kroger-reports-strong-second-quarter-results-and-raises-full-year-2021-guidance" target="_blank">margins decreased by 60 basis points</a>, and many investors apparently saw that as their cue to <a href="https://seekingalpha.com/news/3738797-hot-stocks-aapl-injunction-kr-profit-taking-endp-settlement-wwe-sale-speculation" target="_blank">take profits</a> on the stock after KR ran up 24% in the two months heading into the earnings report.</li> <li data-xf-list-type="ul">McMullen told CNBC that half of the margin decline came as a result of disruptions in Kroger's supply chain, which drove up costs. The other half came from a rise in stolen products fueled by an increased prevalence of organized crime.</li> <li data-xf-list-type="ul">McMullen said shoplifting by organized crime has become more prevalent in the past year or two. He added that he has been working with other retailers and law-enforcement authorities to counter the problem.</li> <li data-xf-list-type="ul">The CEO suggested that technology might make it easier for criminals to sell their ill-gotten products, making "shrinkage" – the industry term for merchandise lost to theft – a bigger problem.</li> <li data-xf-list-type="ul">"In the past, it would have been more flea markets, much harder to sell," he said. "[But] if you look at the current market, it's much easier to sell in the market."</li> </ul></blockquote><p></p>
[QUOTE="Weather Man, post: 16666575, member: 137766"] I'm trying to remember the last time a American executive just outright came out and said organized crime is affecting earnings. Let me guess, there are a lot of Kroger stores in CA. [URL='https://seekingalpha.com/news/3738842-kroger-ceo-organized-crime-supply-chain-issues-compressed-margins'] Kroger CEO: Organized crime, supply chain issues compressed margins[/URL] [LIST] [*]Kroger (NYSE:[URL='https://seekingalpha.com/symbol/KR']KR[/URL]) CEO Rodney McMullen said Friday that the gross margin compression that contributed to poor reception for the grocery chain's latest earnings report stemmed from supply-chain pressures and shoplifting that involved organized crime. [*]Speaking to CNBC, McMullen also predicted 2%-3% inflation for the rest of the year for the company's inputs. He added that the chain can pass most of the costs associated with increased commodities prices to its customers. [*]Kroger shares dropped more than 7% on Friday even though the company reported earnings and revenue [URL='https://seekingalpha.com/news/3738655-kroger-eps-beats-0_16-beats-on-revenue']that nominally topped expectations[/URL]. [*]The company's [URL='https://seekingalpha.com/pr/18467913-kroger-reports-strong-second-quarter-results-and-raises-full-year-2021-guidance']margins decreased by 60 basis points[/URL], and many investors apparently saw that as their cue to [URL='https://seekingalpha.com/news/3738797-hot-stocks-aapl-injunction-kr-profit-taking-endp-settlement-wwe-sale-speculation']take profits[/URL] on the stock after KR ran up 24% in the two months heading into the earnings report. [*]McMullen told CNBC that half of the margin decline came as a result of disruptions in Kroger's supply chain, which drove up costs. The other half came from a rise in stolen products fueled by an increased prevalence of organized crime. [*]McMullen said shoplifting by organized crime has become more prevalent in the past year or two. He added that he has been working with other retailers and law-enforcement authorities to counter the problem. [*]The CEO suggested that technology might make it easier for criminals to sell their ill-gotten products, making "shrinkage" – the industry term for merchandise lost to theft – a bigger problem. [*]"In the past, it would have been more flea markets, much harder to sell," he said. "[But] if you look at the current market, it's much easier to sell in the market." [/LIST] [/QUOTE]
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SVTPerformance's Chain of Restaurants
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