SpartanNash (SPTN) Hikes Dividend: What Else Should You Know?
In a move that underscores its ongoing commitment to shareholder value, SpartanNash Co. SPTN has approved an increase in its quarterly cash dividend.
On Mar 6, 2024, management unveiled a quarterly cash dividend of 21.75 cents per common share, which indicates an increase of 1.2% from the fiscal 2023 quarterly dividend of 21.5 cents per share.
This decision reflects not only the company's stable financial performance but also its strategic approach towards fostering investor confidence and securing a robust financial footing. By increasing the dividend, SpartanNash signals its operational strength and its ability to maintain a consistent growth trajectory, even in the face of the dynamic challenges that the food solutions industry often presents.
Scheduled for payment on Mar 28, 2024, to shareholders of record as of the close of business on Mar 14, 2024, this enhanced dividend is an indicator of SpartanNash's prudent financial management and its focus on sustainable growth. It serves as a tangible expression of the company's dedication to rewarding its investors and reaffirming their faith in its strategic direction.
As the food solutions industry continues to evolve, SpartanNash's latest dividend increase is a clear message of its resilience and optimistic outlook. With a solid foundation of 34,469,289 common shares outstanding as of the announcement, this prominent player in the food solutions sector is well-positioned to navigate the complexities of the market while continuing to deliver value to its shareholders.
Image Source: Zacks Investment Research
Other Growth Endeavors
SpartanNash has been diligently working on several strategic initiatives and fundamental growth factors aimed at enhancing its operational excellence and community engagement, thereby solidifying its market position and future growth trajectory.
The company is expanding the use of Simbe's autonomous inventory robot, Tally, to 60 additional stores across the Midwest after a successful pilot in 15 stores. Tally provides real-time inventory insights, helping associates save time and ensuring that products are fresh, stocked and competitively priced. This move is part of SpartanNash's investment in technology to improve the shopping experience.
However, in the fourth quarter, the company faced challenges in both its wholesale and retail segments. Wholesale net sales dropped 2% year over year to $1.598 billion, mainly due to decreased volume in the national accounts channel. Retail net sales also fell 4.5% to $647 million, with comparable store sales declining 2.8%, largely due to reduced food assistance benefits and lower fuel sales.
Shares of this Zacks Rank #4 (Sell) company have declined 9.4% in the past three months against the industry’s growth of 17.3%.
Some Better-Ranked Staple Bets
Here, we have highlighted three better-ranked stocks, namely, Sprouts Farmers Market, Inc. SFM, Sovos Brands Inc. SOVO and Celsius Holdings CELH.
Sovos Brands Inc. is a food company. Its brand portfolio includes Rao's, a premium line of sauces. The company currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Sovos Brands’ current financial-year sales and earnings suggests growth of 12.8% and 16.3%, respectively, from the year-ago reported numbers. SOVO has a trailing four-quarter earnings surprise of 26.4%, on average.
Sprouts Farmers Market, Inc. operates in a highly fragmented grocery store industry. It currently sports a Zacks Rank #1.
The Zacks Consensus Estimate for Sprouts Farmers Market’s current financial-year sales and earnings suggests growth of 6.8% and 3.9%, respectively, from the year-ago reported figures. SFM has a trailing four-quarter earnings surprise of 10%, on average.
Celsius Holdings, which offers functional drinks and liquid supplements, currently carries a Zacks Rank #2 (Buy). CELH has a trailing four-quarter earnings surprise of 67.4%, on average.
The Zacks Consensus Estimate for Celsius Holdings’ current financial-year sales and earnings suggests growth of 41.6% each from the year-ago reported numbers.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
SpartanNash Company (SPTN) : Free Stock Analysis Report
Sprouts Farmers Market, Inc. (SFM) : Free Stock Analysis Report
Celsius Holdings Inc. (CELH) : Free Stock Analysis Report
Sovos Brands, Inc. (SOVO) : Free Stock Analysis Report
