I don't have a position either way in PNRA, but I shorted WFM within the past 1+ hours and just shorted a little more above 94. It's funny you mentiioned PNRA and CRM. They'll probably go down together, though WFM will go down more, IMHO. If WFM was such a good buy, why did the investors (likely venture capital) sell the last major chunk of their stock?
There is costly waste. One example occurred a few days ago when I stopped in and wanted some cherries for myself (my husband doesn't like cherries with pits). There were dozens of big bags of cherries. As allowed, I took an empty produce bag and was about to take 1/3 to 1/2 from a bag and buy that amount. I touched one cherry and then another. They were all soft and beyond optimal firmness to eat. I managed to find a dozen cherries that could be eaten that evening and checked out with that bag alone with few other items. That entire table full of cherry bags was waste for Whole Foods, IMHO. Other produce there didn't look as good as produce at another local store.
Waste like that is costly. I don't even think it was worth giving those bags of cherries to a local food bank. A few cherries could be eaten that night and possibly the next morning, but most were garbage and there was a lot of it. They took a loss on that product. After that, I bought a couple of specials and left. I've since spent a lot of money at a lovely store that's part of a 6 store regional chain and another place. Expansion may take business from other of their stores. Their second store in this small city likely takes some business from their other store here. I realize that I am in a strong grocery (and farmers' market) location, but the New England and NYC stores alone can't make up for the costs elsewhere. Even giving WFM the benefit of the doubt as a business, there's too much increasing competition for this valuation. I'm confident that shorting at and above 94 will pay off nicely. If I were long, I'd grab my profit and stay away.
What you claim is not only applicable to Whole Foods! Every grocery store here and around the world has WASTE issues to one degree or another! Simple fact whether we like it or not! Personally I would wait for the impendin new 52 wk high then consider your short!
Agree 100%-I don't know how they are beating earnings etc etc unless just opening more stores is adding to their bottomline for now. I walk through two of their major stores in manhattan twice a week and it nowhere near as crowded as it used to be a few years ago. This is a CMG/FSLR?GMCR just waiting to happen-of let me throw in DMND. JMHO and if you are long-sell while you can.