Analyst on Kroger's Deal: Roundy's almost defeated
Nov. 18th, 2015
Our client Carol Levenson, director of research, Gimme Credit quoted here:
“Although it’s true that Roundy’s has probably been somewhat starved for capital, we question whether its considerable problems can be fixed simply with new ownership and higher investment,” Levenson wrote.
She called Roundy’s a “struggling” company, pointing out its same-store sales have fallen or been flat for the last six years. Meanwhile, Kroger has a streak of 47 straight quarters of same-store sales growth.