So we know that all manner of home improvement supplies can be had at home improvement giant Home Depot (HD). Tools—both power and otherwise—building supplies and more are all on hand. But one thing that Home Depot is not known for is its food. That may be about to change, though, thanks to a new connection with Wahlburgers. The news left a bad taste in investors’ mouths, though, as shares dropped around 1.5% in Tuesday afternoon’s trading.
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Wahlburgers wants to step up its “non-traditional growth” strategy, and is therefore looking into branching out into several unconventional locations, including Home Depot stores, airports, hotels, and even Bass Pro Shops are on the docket for expansion. Reports suggest that Wahlburgers started looking for new partnerships after losing its partnership effort with Hy-Vee.
Wahlburgers has done this sort of thing before, stepping into casinos, ballparks, and even military bases to offer its breed of fast food. And while it may seem like a bridge too far to put a burger stand in a Home Depot, remember, many Kmart locations used to have their own Little Caesars pizza restaurants. The idea that contractors can now pick up supplies and lunch for the crew from the same location is a distinct added value, and should be helpful for both sides.
Maybe It Was a Bad Idea After All
Meanwhile, a figure in conservative news is coming out against the plan to use Home Depot parking lots as staging grounds for Immigration and Customs Enforcement (ICE) raids. Sean Hannity recently said that the practice should come to an end.
While there are often illegal immigrants at Home Depot parking lots using them as a means to find informal work arrangements, Hannity believes that people out looking for work are probably not the people to focus on first. Hannity noted, “We can vet them. We can do a health check on them and make sure they won’t be a financial burden on the American people. I think that’d be a more responsible, reasonable way to deal with that problem.”
Is Home Depot a Good Long-Term Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on HD stock based on 17 Buys, five Holds and one Sell assigned in the past three months, as indicated by the graphic below. After a 7.71% loss in its share price over the past year, the average HD price target of $407.67 per share implies 7.46% upside potential.
