Whole Foods Market’s (WFMI) Decline In Stock Price

The organic food superstore Whole Foods Market (NASDAQ: WFMI) saw its stock come down by 12% to $28.37 in the afternoon’s trade. High costs, high stock prices and unpredictable dividends for the current year seem to be some of the basic troubles that the company is facing.

Whole Foods reported a 2% rise in sales and cut its overheads, but it still remains a fact that the profits of the company have been going down since it started expanding its operations more and more. Even as food prices have become more budgeted, the profits have not risen above 35% since 2007.

WFMI perhaps needs to decide on either growth or profit, while the company needs to either infuse cash flow or borrow for the sake of dividends. It remains to be seen if the firm’s low margins, high overheads and lower yields will give it a healthy financial environment