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SpartanNash Co. (SPTN)
NASDAQ:SPTN
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SpartanNash Co (SPTN) AI Stock Analysis

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SPTN

SpartanNash Co

(NASDAQ:SPTN)

Rating:71Outperform
Price Target:
$29.00
▲(9.06%Upside)
SpartanNash Co's overall stock score is primarily influenced by its stable financial performance, bullish technical indicators, and positive corporate events like the merger and dividend. Despite these strengths, the valuation remains a concern due to negative earnings, which tempers the overall score.
Positive Factors
Expansion Plans
Management continues to target higher growth by expanding its Hispanic stores and c-stores footprint.
Financial Performance
SpartanNash reported a solid start to the year with net sales and adjusted EBITDA slightly topping forecasts.
Sales and Earnings
SpartanNash posted better-than-expected sales and earnings figures, mostly driven by a recent acquisition.
Negative Factors
Earnings Outlook
Adjusted EPS is expected to be much lower than previous estimates due to higher depreciation and interest expenses.
Profitability Concerns
Higher labor and occupancy expenses weighed on profitability, with adjusted operating margin contracting.
Top-Line Challenges
Analyst expects continued top-line challenges and volume pressures at key independents.

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 Co generates revenue through multiple streams, primarily from its wholesale distribution services and retail operations. The wholesale segment involves the distribution of grocery products to independent and chain retailers, food service distributors, and military commissaries. This segment benefits from significant economies of scale and a broad distribution network. The retail segment consists of the operation of supermarkets, where revenue is generated from direct consumer sales. Key revenue drivers include the volume of goods distributed, store sales performance, and efficiency in supply chain management. Strategic partnerships with brands and suppliers, along with private label offerings, also contribute to the company's earnings by enhancing product margins and customer loyalty.

SpartanNash Co Earnings Call Summary

Earnings Call Date:May 29, 2025
(Q1-2025)
|
% Change Since: 38.20%|
Next Earnings Date:Aug 14, 2025
Earnings Call Sentiment Neutral
SpartanNash's earnings call presented a balanced view with robust sales growth, record-breaking EBITDA, and successful strategic initiatives offset by decreased net earnings, retail profitability pressures, and weather-related challenges. While growth initiatives and strategic programs show promise for future performance, current financial pressures and external challenges temper the overall outlook.
Q1-2025 Updates
Positive Updates
Record-Breaking Adjusted EBITDA
SpartanNash achieved a record-breaking adjusted EBITDA of nearly $77 million, marking a 2.6% increase compared to the prior year's first quarter.
Sales Growth Across Segments
Consolidated net sales increased by 3.7% to over $2.9 billion, with Retail segment sales growing by 19.6% and Wholesale adjusted EBITDA increasing by 7.2%.
Successful Strategic Initiatives
The Cost Leadership Program is expected to deliver $50 million of annual benefits, with $20 million in gains this year. Strategic plans have generated more than $130 million from margin-enhancing initiatives.
Growth in Retail and Military Channels
Retail performance included a 1.6% increase in comparable store sales. The military business showed continued growth for 13 consecutive quarters.
Expansion in Ethnic Markets
The company is expanding its Hispanic food markets, with new stores planned in the Midwest and Michigan, supported by positive performance from existing stores.
Negative Updates
Decreased Net Earnings
Reported net earnings were $2.1 million, or $0.06 per diluted share, compared to $13 million, or $0.37 per diluted share, in Q1 last year.
Retail Segment Profitability Pressures
Retail adjusted EBITDA decreased to $15.1 million due to higher store labor and occupancy costs, resulting in an operating loss of $14.3 million compared to a $5.4 million loss the previous year.
Impact of Inclement Weather
An ice storm impacted nearly 10% of stores, affecting comparable store sales by 80 basis points, resulting in spoilage losses estimated at $1-2 million.
Increased Interest Expenses
Interest expense increased by $1.7 million to $15.2 million, primarily due to borrowings related to recent acquisitions.
Company Guidance
During the SpartanNash First Fiscal Quarter 2025 Earnings Conference Call, the company reported a strong performance with several key metrics highlighted. Adjusted EBITDA reached a record-breaking $76.9 million, representing a 2.6% increase from the previous year's first quarter. Total sales grew by 3.7% to over $2.9 billion, with the Retail segment experiencing a 1.6% increase in comparable store sales despite an 80 basis point impact from inclement weather. The Wholesale segment reported net sales of nearly $2 billion, with military channel growth offsetting softness in national accounts. The company reaffirmed its yearly guidance, projecting net sales between $9.8 billion to $10 billion and adjusted EBITDA between $263 million to $278 million. SpartanNash also emphasized its Cost Leadership Program, expected to deliver $50 million in annual benefits, with $20 million anticipated this year. Additionally, the company highlighted its strategic initiatives in expanding retail operations through remodels, convenience stores, and Hispanic food markets, aiming for a balanced offering of price and value.

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
72
Positive
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
70
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Mar 2022Mar 2021
Income Statement
Total Revenue9.55B7.48B9.64B8.93B9.35B
Gross Profit1.51B1.15B1.50B1.40B1.42B
EBITDA159.26M83.17M70.85M116.10M128.60M
Net Income299.00K41.93M34.52M73.75M75.91M
Balance Sheet
Total Assets2.60B2.36B2.31B2.21B2.28B
Cash, Cash Equivalents and Short-Term Investments21.57M17.96M29.09M10.67M19.90M
Total Debt1.11B865.58M788.10M720.27M811.09M
Total Liabilities1.86B1.58B1.54B1.42B1.54B
Stockholders Equity743.49M778.18M766.07M782.87M735.05M
Cash Flow
Free Cash Flow73.48M95.68M13.07M81.73M239.42M
Operating Cash Flow205.88M95.68M110.35M161.16M306.72M
Investing Cash Flow-247.03M-82.00M-100.95M-47.98M-57.22M
Financing Cash Flow44.75M-25.21M9.02M-122.41M-253.76M

SpartanNash Co Technical Analysis

Technical Analysis Sentiment
Positive
Last Price26.59
Price Trends
50DMA
22.15
Positive
100DMA
20.84
Positive
200DMA
19.87
Positive
Market Momentum
MACD
1.28
Positive
RSI
77.75
Negative
STOCH
42.11
Neutral
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 26.59 is above the 20-day moving average (MA) of 26.54, above the 50-day MA of 22.15, and above the 200-day MA of 19.87, indicating a bullish trend. The MACD of 1.28 indicates Positive momentum. The RSI at 77.75 is Negative, neither overbought nor oversold. The STOCH value of 42.11 is Neutral, 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 26 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 (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$38.88B20.7594.91%2.56%3.55%-5.79%
78
Outperform
$15.54B41.439.05%6.20%-10.58%
76
Outperform
$2.61B42.8112.90%7.85%79.89%
75
Outperform
$19.43B38.5911.16%6.32%5.69%
71
Outperform
$900.29M2,245.98-1.38%3.29%0.26%-119.66%
65
Neutral
$27.21B15.46-4.29%3.19%1.01%3.46%
62
Neutral
$1.69B-4.11%6.62%53.12%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SPTN
SpartanNash Co
26.59
6.71
33.75%
SYY
Sysco
80.76
9.87
13.92%
CHEF
The Chefs' Warehouse
64.16
21.34
49.84%
UNFI
United Natural Foods
27.90
12.37
79.65%
PFGC
Performance Food Group
99.53
32.96
49.51%
USFD
US Foods Holding
83.98
31.29
59.39%

SpartanNash Co Corporate Events

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.

The most recent analyst rating on (SPTN) stock is a Hold with a $20.00 price target. To see the full list of analyst forecasts on SpartanNash Co stock, see the SPTN Stock Forecast page.

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.

The most recent analyst rating on (SPTN) stock is a Hold with a $20.00 price target. To see the full list of analyst forecasts on SpartanNash Co stock, see the SPTN Stock Forecast page.

Executive/Board ChangesShareholder Meetings
SpartanNash Co Concludes Annual Shareholder Meeting
Neutral
May 23, 2025

On May 21, 2025, SpartanNash Co held its Annual Meeting, where shareholders voted on several key proposals. The company successfully elected its board of directors, approved executive compensation, ratified Deloitte & Touche LLP as its accounting firm, and amended its bylaws to allow shareholders to call special meetings at a 25% ownership threshold. However, a proposal to lower this threshold to 15% was rejected.

The most recent analyst rating on (SPTN) stock is a Hold with a $20.00 price target. To see the full list of analyst forecasts on SpartanNash Co stock, see the SPTN Stock Forecast page.

Dividends
SpartanNash Declares Quarterly Cash Dividend Approval
Positive
May 22, 2025

On May 21, 2025, SpartanNash’s Board of Directors approved a quarterly cash dividend of $0.22 per common share, to be paid on June 30, 2025, to shareholders of record as of June 13, 2025. This decision reflects SpartanNash’s ongoing commitment to providing value to its shareholders and underscores its stable financial position within the food solutions industry.

The most recent analyst rating on (SPTN) stock is a Hold with a $20.00 price target. To see the full list of analyst forecasts on SpartanNash Co stock, see the SPTN Stock Forecast page.

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: Jun 25, 2025