Trader Joe’s

Bullish

• $TJS— Trader Joe's has potential for 10x valuation growth through international expansion, with the Albrecht foundations willing to play a long game

  • “Trader Joe's first Joe, and now under the ownership of the Albrecht foundations, is willing to play such a long game. In the fullness of time, I bet Trader Joe's will be worth at least TEDx that.”

    David·2:50:40Hear it
• $COST— Costco's international business model and expansion capabilities are viewed favorably compared to Trader Joe's

  • “Costco is an international business.”

    David·3:11:16Hear it
• $ALDI— Aldi is experiencing rapid post-COVID expansion as the fastest growing grocer in the US with plans for 800 new stores

  • “There are 2,500 Aldi's in The US. It is the fastest growing grocer in The US since COVID, and they plan to open 800 more stores in the next couple years.”

    David·2:03:54Hear it

Bearish

• $KR— Kroger trades at low revenue multiples (0.3x) reflecting poor valuation of traditional grocers

  • “Kroger trades at 0.3 x revenue, and Albertsons at 0.1 x revenue.”

    Ben·2:49:10Hear it
• $ACI— Albertsons trades at extremely low revenue multiples (0.1x) indicating weak market valuation

  • “Kroger trades at 0.3 x revenue, and Albertsons at 0.1 x revenue.”

    Ben·2:49:10Hear it
• $GROCERY— Traditional supermarkets have evolved into real estate companies, losing their merchandising competency

  • “And the net of all this for Joe and Trader Joe's and being about to get into this market is that supermarkets basically become real estate companies.”

    David·44:54Hear it
• $CPG— Private label strategies like Trader Joe's eliminate traditional CPG marketing costs and slotting fees, disrupting the CPG business model

  • “The brand is just our brand. If you make the food for us, we will pay you for that. But it's our brand. You don't have to pay in marketing costs. You don't have to pay the slotting fees to get on our shelves.”

    Ben·1:37:10Hear it

Not investment advice.