Weis Markets remains a 'Hold' as margin pressures, higher Capex, and insider buybacks limit upside despite solid regional traffic and pharmacy growth. WMK's operating margin fell to 1.8% due to rising COGS and labor costs, with looming minimum wage hikes in Pennsylvania threatening further compression. FCF remains weak, often failing to cover dividends and Capex, making WMK less attractive as a defensive investment compared to peers.
Weis Markets remains a safe, steady, but uninspiring stock, delivering low-single-digit revenue growth and stable margins, but underperforming the S&P. Capital allocation continues to disappoint, with cash used for related-party share buybacks rather than rewarding minority shareholders through dividends or open-market repurchases. Q2 results showed resilient core grocery and pharmacy growth, but margin compression and higher costs weighed on profitability, with little near-term upside expected.
Weis Markets is a conservative, family-run grocer with a strong balance sheet, consistent dividends, and a focus on steady, low-risk growth. Revenue and same-store sales growth are modest, with most expansion coming from small acquisitions and organic growth in core Mid-Atlantic markets. Capital allocation is cautious, with limited buybacks and slow dividend growth, despite ample free cash flow and investment income outperforming core operations.
| Consumer Staples Distribution & Retail Industry | Consumer Staples Sector | Jonathan H. Weis CEO | NYSE Exchange | 948849104 CUSIP |
| US Country | 22,000 Employees | 10 Nov 2025 Last Dividend | 7 May 1979 Last Split | 5 Jan 1988 IPO Date |
Weis Markets, Inc., founded in 1912 and headquartered in Sunbury, Pennsylvania, operates a chain of supermarkets across Pennsylvania and its neighboring states. The company has carved out a niche in the retail food industry by offering a wide range of groceries and other products through its chain of stores. With its focus on quality and customer service, Weis Markets has grown to own and operate 197 stores across Pennsylvania, Maryland, Delaware, New Jersey, New York, West Virginia, and Virginia as of March 7, 2022. This expansion reflects the company's commitment to providing accessible and convenient shopping options to its customers.
Includes a comprehensive selection of food products from various categories including canned goods, spices, snacks, and other pantry essentials.
Offers a wide variety of dairy items such as milk, cheese, yogurt, and butter, catering to the diverse preferences of its customers.
Features an extensive array of frozen items ranging from vegetables and fruits to convenience meals and ice cream.
Provides fresh, high-quality meats and seafood, including beef, pork, chicken, and a variety of fish and shellfish.
Sells a selection of fresh fruits and vegetables, ensuring customers have access to healthy and nutritious options.
Offers floral services with a variety of fresh flowers and arrangements for all occasions.
Includes in-store pharmacies that provide prescription services, health screenings, and immunizations.
Features a deli section offering a range of meats, cheeses, and ready-to-eat options.
Provides convenience with an assortment of ready-to-eat meals and snacks for customers seeking quick and easy meal options.
Offers freshly baked goods including bread, cakes, pastries, and other sweet treats.
Sells a curated selection of beer and wine, catering to the tastes and preferences of its adult customers.
Operates Gas-n-Go fuel stations at select locations, providing convenience for customers looking to refuel their vehicles during their shopping trip.
Includes health and beauty care, household products, and other general items to meet the everyday needs of its customers.