An ETF that focuses on food and beverage stocks was lower Thursday as holding Whole Foods (NasdaqGS: WFM) slipped 5% in the wake of its quarterly earnings update. The food and beverage sector could see action as we enter the holiday season.
Whole Foods reported net income in line with analyst estimates and raised its dividend.
“But the Street has been used to more dramatic earnings surprises, and the stock is selling off today,” reports Avi Salzman at Barron’s.
Whole Foods reported in-line revenue, and lifted its dividend payout 43%, to 20 cents. Comparable store sales rose 8.5%, although comparable sales for the current quarter are up 7.3% so far, which is a slight deceleration. Sales were hurt by Hurricane Sandy, Barron’s reports.
Cautious consumer spending is one of the major factors that is limiting more growth, reports Zacks.