Grocers see stock hits after disclosing that discounts will erode earnings

September 11, 2016 at 3:34AM
William Ackman, of Pershing Square Capital Management, has given Chipotle shares a boost.
William Ackman, of Pershing Square Capital Management, has given Chipotle shares a boost. (Canadian Press via Associated Press/The Minnesota Star Tribune)

Supermarket slump: Shares in some grocers were down sharply Wednesday on worries about lower food prices and greater discounts. Sprouts Farmers Markets fell 13 percent, to $19.85, after the company cut its guidance. Its shares closed the week at $19.60. Whole Foods slid 5.4 percent, to $29.05, closing Friday at $28.60.

Eureka: Apache Corp. surged 6.8 percent to $55.19 Wednesday after the oil and gas company said it will start working this year to extract crude from a newly discovered major oil field in Texas. The stock closed the week at $59.40.

For take out: Chipotle Mexican Grill climbed 4.7 percent Wednesday to $433.73 after Bill Ackman's investment firm Pershing Square said it has acquired a 9.9 percent stake in the struggling restaurant chain. The stock closed Friday at $426.55.

No fun: Dave & Buster's Entertainment fell 3.4 percent to $44.68 Wednesday after the restaurant and arcade chain reported weaker-than-anticipated sales and lowered its same-store sales growth outlook. The stock finished the week at $42.36.

Bad outlook: Tractor Supply slumped 15.6 percent to $70.52 Thursday after the farm equipment retailer said its business is being hurt by cuts in oil, gas and coal production, declining outlays by farmers and weak spending on heating fuel for this fall and winter. The stock closed Friday at $68.42.

Rough report: Pier 1 Imports tumbled 13.5 percent to $4.15 after the retailer gave weak quarterly guidance and said its president and CEO will be leaving the company. The stock closed the week at $3.84.

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Glen Stubbe/The Minnesota Star Tribune

State officials said higher premiums and diminished federal tax credits mean some people likely feel they can’t afford coverage.

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