Friday, June 1, 2012

Investopedia: The Fresh Market Needs To Be Whole Foods 2.0

It's rare enough to find a retailer that trades at an enterprise value-to-revenue ratio of even 1.0, let alone the 2.17 times of The Fresh Market (NYSE:TFM). Clearly, then, investors are putting a premium on what is one of the few exciting growth stories in food retailing today. While there's a lot to like about this story, including a massively under-penetrated market, accelerating comps and good margins, the bulls seem to have this story well ahead of itself. At these prices, The Fresh Market pretty much has to be the next Whole Foods (NYSE:WFM) to support the implied valuation.

Read the full article here:
http://stocks.investopedia.com/stock-analysis/2012/The-Fresh-Market-Needs-To-Be-Whole-Foods-2.0-TFM-WMT-WFM-KR0601.aspx

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