tiprankstipranks
Trending News
More News >
SpartanNash Co. (SPTN)
:SPTN
US Market
Advertisement

SpartanNash Co (SPTN) AI Stock Analysis

Compare
284 Followers

Top Page

SPTN

SpartanNash Co

(NASDAQ:SPTN)

Select Model
Select Model
Select Model
Neutral 58 (OpenAI - 4o)
Rating:58Neutral
Price Target:
$28.00
▲(4.09% Upside)
SpartanNash Co's overall stock score reflects strong revenue growth and strategic initiatives, tempered by profitability challenges and high leverage. The merger with C&S Wholesale Grocers offers potential benefits, but legal challenges and current financial pressures present risks. Technical indicators suggest the stock may be overbought, adding caution to the outlook.
Positive Factors
Revenue Growth
Strong revenue growth indicates expanding market presence and successful sales strategies, supporting long-term business sustainability.
Strategic Initiatives
Strategic initiatives like the Cost Leadership Program enhance operational efficiency, potentially improving margins and competitive positioning.
Merger with C&S Wholesale Grocers
The merger with C&S Wholesale Grocers could strengthen supply chain capabilities, offering long-term competitive advantages and market reach.
Negative Factors
Profitability Challenges
Negative net margins highlight ongoing profitability issues, which could hinder reinvestment and growth if not addressed.
High Leverage
High leverage increases financial risk, potentially limiting flexibility in strategic investments and operations.
Legal Challenges
Legal challenges related to the merger could delay integration and increase costs, impacting strategic execution and financial performance.

SpartanNash Co (SPTN) vs. SPDR S&P 500 ETF (SPY)

SpartanNash Co Business Overview & Revenue Model

Company DescriptionSpartanNash Company distributes and retails grocery products. It operates in three segments: Food Distribution, Military, and Retail. The Food Distribution segment offers approximately 65,000 stock-keeping units, such as dry groceries, produce, dairy products, meat, delicatessen items, bakery goods, frozen food, seafood, floral products, general merchandise, beverages, tobacco products, health and beauty care, and pharmacy products to independent retailers, national retailers, food service distributors, e-commerce providers, and corporate owned retail stores. This segment also offers various value-added services to retailers. The Military segment sells and distributes grocery products to 160 military commissaries and approximately 400 exchanges located in 39 states across the United States and the District of Columbia, Europe, Cuba, Puerto Rico, Honduras, Iraq, Kuwait, Bahrain, Qatar, and Djibouti. The Retail segment primarily operates 145 corporate owned retail stores and 36 fuel centers, primarily under the banners of Family Fare, Martin's Super Markets, D&W Fresh Market, VG's Grocery, and Dan's Supermarket. SpartanNash Company also markets and distributes private brand items primarily under the Our Family brand name. The company was formerly known as Spartan Stores, Inc. and changed its name to SpartanNash Company in November 2013. SpartanNash Company was founded in 1917 and is headquartered in Grand Rapids, Michigan.
How the Company Makes MoneySpartanNash generates revenue through several key streams, primarily from wholesale distribution, retail sales, and its military commissary operations. The wholesale division supplies a wide array of grocery items to independent retailers, supermarkets, and foodservice operators, accounting for a significant portion of the company's revenue. Retail sales come from SpartanNash's own grocery stores, where they sell a variety of food and non-food products directly to consumers. Additionally, the company's operations in military commissaries provide another revenue source, as they supply goods to military families. Strategic partnerships with various suppliers and manufacturers also contribute to its earnings, enabling the company to offer competitive pricing and a wide selection of products. The focus on private label products further enhances profitability by allowing higher margins compared to branded items.

SpartanNash Co Earnings Call Summary

Earnings Call Date:Aug 14, 2025
(Q1-2025)
|
% Change Since: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Positive
SpartanNash reported a strong first quarter with record-breaking adjusted EBITDA, significant sales growth, and successful strategic initiatives. However, challenges such as weather impacts, retail operating losses, and increased interest expenses were noted. Despite these challenges, the company reaffirmed its 2025 guidance, reflecting confidence in achieving its targets.
Q1-2025 Updates
Positive Updates
Record-Breaking Adjusted EBITDA
SpartanNash reported a record-breaking adjusted EBITDA of nearly $77 million, a 2.6% increase compared to the prior year first quarter.
Sales Growth and Retail Expansion
Sales increased by 3.7% to over $2.9 billion. Retail segment results were strong with a 1.6% increase in comparable store sales, even with weather-related disruptions.
Military Channel Growth
The military business has grown for 13 consecutive quarters, contributing positively to the Wholesale segment's performance.
Cost Leadership Program
The newly launched Cost Leadership Program is expected to deliver $50 million in annual benefits, with $20 million anticipated in the current year.
Strategic Plan Achievements
Since 2021, the strategic plan has generated over $130 million from margin-enhancing initiatives, achieving the multi-year plan target a year early.
Retail Store Innovations
The introduction of unique in-store offerings like the bratwurst campaign resulted in a 148% increase in brat sales during the first week.
Reaffirmed 2025 Guidance
Despite challenging market conditions, SpartanNash reaffirmed its guidance for fiscal 2025, expecting net sales between $9.8 billion and $10 billion.
Negative Updates
Impact of Inclement Weather
Inclement weather, specifically a historic ice storm, affected nearly 10% of stores, causing an 80 basis point impact on comparable store sales.
Retail Operating Loss
The Retail segment reported an operating loss of $14.3 million, compared to a loss of $5.4 million in the first quarter of 2024.
Increased Interest Expense
Interest expense increased by $1.7 million to $15.2 million, primarily due to increased borrowings related to recent acquisitions.
Impact of Pharmacy Pressures
Pharmacy pressures, driven by PBMs, led to a significant impact of around $3 million on profitability.
Company Guidance
During the SpartanNash First Fiscal Quarter 2025 Earnings Conference Call, the company provided several key metrics and guidance. SpartanNash reported a record-breaking adjusted EBITDA of $77 million, reflecting a 2.6% increase from the previous year. The company achieved a sales increase of 3.7% to over $2.9 billion, with the Retail segment experiencing a 1.6% rise in comparable store sales despite weather-related challenges. The Wholesale segment posted net sales of nearly $2 billion, with a noted growth in the military channel. For fiscal 2025, SpartanNash reaffirmed its guidance, projecting net sales between $9.8 billion to $10 billion and an adjusted EBITDA of $263 million to $278 million. The company also highlighted its Cost Leadership Program, expected to yield $50 million in annual benefits, with $20 million anticipated in the current year.

SpartanNash Co Financial Statement Overview

Summary
SpartanNash Co demonstrates stable revenue and gross profit margins, but faces challenges with profitability due to negative net income. Balance sheet is balanced with moderate leverage. Positive operating cash flow, but free cash flow growth is negative, indicating a need for improved cash management.
Income Statement
65
Positive
SpartanNash Co shows moderate performance in its income statement. The Gross Profit Margin for TTM (Trailing-Twelve-Months) is approximately 16.1%, indicating reasonable cost management. The company faces challenges with profitability, as evident by a negative Net Profit Margin of around -0.11% for TTM, primarily due to a net loss. Revenue growth is marginal, with a slight increase from the previous year. Profitability metrics like EBIT and EBITDA margins are low, impacting overall performance.
Balance Sheet
55
Neutral
The balance sheet reflects a balanced financial position for SpartanNash Co. The Debt-to-Equity ratio is approximately 1.51, suggesting moderate leverage compared to industry norms. Return on Equity (ROE) is weak due to the net loss in TTM, but the Equity Ratio is stable at about 28.7%, indicating a solid equity base relative to total assets.
Cash Flow
60
Neutral
Cash flow analysis shows SpartanNash Co's ability to generate cash, with a positive operating cash flow. The Free Cash Flow Growth Rate is negative, reflecting reduced free cash flow in TTM. The Operating Cash Flow to Net Income ratio is strong, indicating efficient cash generation relative to reported net income. However, the Free Cash Flow to Net Income ratio is impacted by the net loss, highlighting a need for improved cash management.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue9.69B9.55B7.48B9.64B8.93B9.35B
Gross Profit1.58B1.51B1.15B1.50B1.40B1.42B
EBITDA154.65M159.26M83.17M70.85M116.10M128.60M
Net Income-15.89M299.00K41.93M34.52M73.75M75.91M
Balance Sheet
Total Assets2.56B2.60B2.36B2.31B2.21B2.28B
Cash, Cash Equivalents and Short-Term Investments25.50M21.57M17.96M29.09M10.67M19.90M
Total Debt1.06B1.11B865.58M788.10M720.27M811.09M
Total Liabilities1.82B1.86B1.58B1.54B1.42B1.54B
Stockholders Equity741.82M743.49M778.18M766.07M782.87M735.05M
Cash Flow
Free Cash Flow69.84M73.48M95.68M13.07M81.73M239.42M
Operating Cash Flow186.34M205.88M95.68M110.35M161.16M306.72M
Investing Cash Flow-226.97M-247.03M-82.00M-100.95M-47.98M-57.22M
Financing Cash Flow40.90M44.75M-25.21M9.02M-122.41M-253.76M

SpartanNash Co Technical Analysis

Technical Analysis Sentiment
Positive
Last Price26.90
Price Trends
50DMA
26.44
Positive
100DMA
23.74
Positive
200DMA
21.26
Positive
Market Momentum
MACD
0.15
Negative
RSI
71.19
Negative
STOCH
81.82
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SPTN, the sentiment is Positive. The current price of 26.9 is above the 20-day moving average (MA) of 26.57, above the 50-day MA of 26.44, and above the 200-day MA of 21.26, indicating a bullish trend. The MACD of 0.15 indicates Negative momentum. The RSI at 71.19 is Negative, neither overbought nor oversold. The STOCH value of 81.82 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SPTN.

SpartanNash Co Risk Analysis

SpartanNash Co disclosed 28 risk factors in its most recent earnings report. SpartanNash Co reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

SpartanNash Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
2.42B36.8110.32%7.90%68.05%
74
Outperform
39.13B21.9299.89%2.55%3.21%-4.03%
74
Outperform
16.37B47.367.61%8.61%-22.16%
69
Neutral
17.38B32.7111.95%5.32%11.65%
66
Neutral
1.77B-26.496.62%53.12%
58
Neutral
$910.78M2,245.98-2.08%3.26%1.54%-134.75%
62
Neutral
$20.33B14.63-3.31%3.23%1.93%-12.26%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SPTN
SpartanNash Co
26.90
5.60
26.29%
CVGW
Calavo Growers
26.19
-1.41
-5.11%
ANDE
The Andersons
39.69
-9.47
-19.26%
UNFI
United Natural Foods
30.19
13.46
80.45%
HFFG
HF Foods Group
3.38
-0.14
-3.98%
AVO
Mission Produce
12.23
-0.72
-5.56%

SpartanNash Co Corporate Events

M&A TransactionsShareholder Meetings
SpartanNash Shareholders Approve Merger with C&S Wholesale
Positive
Sep 9, 2025

On September 9, 2025, SpartanNash held a virtual special meeting of shareholders to vote on proposals related to a merger agreement with C&S Wholesale Grocers. The merger, which will result in SpartanNash becoming a wholly-owned subsidiary of New Mackinac HoldCo, Inc., was approved by a significant majority of shareholders. Additionally, proposals regarding executive compensation and potential adjournment of the meeting were also approved, reflecting strong shareholder support for the transaction.

M&A TransactionsLegal Proceedings
SpartanNash Faces Legal Challenges Amid Merger Plans
Negative
Aug 29, 2025

On June 22, 2025, SpartanNash entered into a merger agreement with New Mackinac HoldCo, Inc., which will see SpartanNash become a wholly-owned subsidiary of the parent company. However, the merger has faced legal challenges as shareholders have filed complaints alleging misleading information in the company’s proxy statement. To mitigate potential delays and costs, SpartanNash has voluntarily amended its proxy statement while denying any wrongdoing. The company remains committed to proceeding with the merger, ensuring stakeholders that the transaction’s terms and timing remain unaffected.

Dividends
SpartanNash Declares Quarterly Dividend for Shareholders
Positive
Aug 28, 2025

On August 27, 2025, SpartanNash’s Board of Directors approved a quarterly cash dividend of $0.22 per common share, to be paid on September 30, 2025, to shareholders of record as of September 15, 2025. This decision reflects the company’s ongoing commitment to providing value to its shareholders, with 33,862,518 common shares outstanding as of August 26, 2025.

M&A TransactionsRegulatory Filings and Compliance
SpartanNash Co Enters Merger Agreement with C&S
Neutral
Aug 20, 2025

On June 22, 2025, SpartanNash Co entered into a Merger Agreement with New Mackinac HoldCo, Inc., Mackinac Merger Sub, Inc., and C&S Wholesale Grocers, LLC, aiming to merge and become a wholly-owned subsidiary of the parent company. The merger process involved a voluntary withdrawal and resubmission of the HSR Act Notification to allow the FTC more time for antitrust review, with the transaction expected to be completed by late 2025, pending regulatory approvals and shareholder agreement.

M&A TransactionsFinancial Disclosures
SpartanNash to Release Q2 Results Amid Acquisition
Neutral
Jul 31, 2025

On July 31, 2025, SpartanNash announced it would release its second-quarter financial results on August 14, 2025, but will not host a conference call due to its pending acquisition by C&S Wholesale Grocers. The acquisition, announced on June 23, 2025, is expected to close in late 2025, pending shareholder and regulatory approvals, and could impact SpartanNash’s operations and market positioning.

Delistings and Listing ChangesM&A Transactions
SpartanNash Co Announces Merger with New Mackinac HoldCo
Neutral
Jun 23, 2025

On June 22, 2025, SpartanNash Company entered into a merger agreement with New Mackinac HoldCo, Inc., and C&S Wholesale Grocers, LLC, where SpartanNash will become a wholly-owned subsidiary of New Mackinac HoldCo. The merger, unanimously approved by SpartanNash’s Board of Directors, will result in each share of SpartanNash’s common stock being converted into $26.90 in cash. The transaction is expected to close in the fourth quarter of 2025, pending regulatory and shareholder approvals. Upon completion, SpartanNash’s common stock will be delisted from NASDAQ, and the merger is not subject to a financing condition. Termination fees are outlined in the agreement should the merger not proceed as planned.

M&A Transactions
SpartanNash Announces Merger with C&S Wholesale Grocers
Positive
Jun 23, 2025

On June 22, 2025, SpartanNash entered into a merger agreement with C&S Wholesale Grocers, where C&S will acquire SpartanNash for $26.90 per share, totaling $1.77 billion. This merger, approved by both companies’ boards, aims to create a more efficient supply chain and offer competitive pricing, benefiting customers and communities across the U.S. The transaction is expected to close in late 2025, pending shareholder and regulatory approvals.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 10, 2025