Shares in retailer Walmart (WMT) were stronger today as it opened its first-ever company-owned and -operated beef facility in the U.S.
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Supply Chain Resilience
The 300,000 sq. ft. facility will package and distribute Angus beef sourced from Sustainable Beef LLC in North Platte, Nebraska, to Walmart stores across the Midwest. This follows Walmart’s investment in Sustainable Beef in 2022, part of its aim to create an end-to-end beef supply chain.
Sustainable Beef’s majority ownership is local and producer-centric, with cattle sourced from no more than a 250-mile radius of the plant in a region known for exceptionally high-quality cattle.
“This is the first case-ready facility fully owned and operated by Walmart, and that milestone ensures we’re able to bring more consistency, more transparency, and more value to our customers,” said John Laney, executive vice president of Food at Walmart U.S. “With more customers seeking greater transparency about where their food comes from, this investment demonstrates Walmart’s commitment to delivering traceable, high-quality products while strengthening supply chain resiliency and control.”
U.S. Pledge
The new facility has created more than 600 jobs for Olathe and surrounding communities. It will process fresh beef into case-ready cuts that will be shipped directly to Walmart distribution centers serving Midwest stores.
The facility is also part of Walmart’s pledge to invest $350 billion in U.S.-made products by 2031. According to the company, over two-thirds of Walmart’s annual spend is on products made, grown, or assembled in the United States.
This move is also likely to please President Trump, who has made creating and investing in U.S. employment a key plank of his administration’s strategy. This has led to a number of firms increasing expenditure in the U.S.
Is WMT a Good Stock to Buy Now?
On TipRanks, WMT has a Strong Buy consensus based on 28 Buy and 1 Hold ratings. Its highest price target is $120. WMT stock’s consensus price target is $109.71 implying an 12.26% upside.
