- Albertsons' comparable-store sales increased +7.9% for the November-end quarter and loyalty members increased an impressive +1.2M QoQ to 33M (+16% YoY). Our data indicates that Jewel-Osco was the outperforming brand in the portfolio. The gap between comp-store-sales and traffic is explained by food-at-home inflation running at a +11.8% YoY rate as of December.
- Albertsons' 2- and 3-year comp CAGRs improved, and the rate is at the high-end of the industry.
- Trailing-twelve-month (TTM) sales per square foot increased $11 QoQ to $636 and are likely to near $690 in a year given ongoing inflation and market share capture.
- TTM EBITDA and free cash flow increased to $4.7B / $846M and are likely to be $500M higher in a year.
- The company did not provide an update on its proposed merger with Kroger in its quarterly SEC filings but did note that it had approved "up to $100 million for a retention program covering certain executives and other employees in order to ensure a successful and efficient integration process" related to the transactions. According to the company, 50% of the retention bonus would be paid at the close of the merger, and the other 50% six months later. The bonuses would be paid even if the merger is terminated.
