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Publix CEO & President Todd Jones Comments on Fourth Quarter 2017: Source Reports $1.53B Investment Plan for 2018

Publix CEO & President Todd Jones Comments on Fourth Quarter 2017: Source Reports $1.53B Investment Plan for 2018

Friday, March 2nd, 2018

Privately-traded Publix recently enjoyed a boost in stock price standing, as big plans became known for the retailer’s fiscal 2018.

Outside news sources reported that the coming year has much in store from Publix, both for its stores and its employees.

Publix plans to raise wages for its hourly employees and some managers, according to The Orlando Sentinel, keeping up with the likes of Walmart, Amazon, and other competitors.

Publix storefront

“We want to continue to invest in our most valuable asset—our associates,” Dwaine Stevens, Media & Community Relations Manager, told the Sentinel in an email. “So with this investment, we will increase the retail pay range for non-management positions as well as assistant department managers and department manager positions.”

And its people are not the only target for coming investment, as reported by the Palm Beach Post. According to the news source, Publix has drastically boosted its ratio of owned stores versus leased over the last few years, with more up its sleeve for the coming year. Not only did the retailer own nearly a third of its stores as of December 31, 2017—371 of its 1,167 locations, or 31.8 percent—but it plans to invest $1.53 billion in 2018 to build new stores, remodel old ones, upgrade technology, and buy shopping centers it anchors. Publix had nearly $1.5 billion in cash and short-term investments at the end of 2017, the report said.

With the stock boost and so much in the works for 2018, Publix looks to be closing out the fiscal 2017 year with its eyes on the horizon.

Todd Jones, CEO and President, Publix“I’m delighted we had a significant increase in our stock price,” said Publix CEO and President Todd Jones in the company’s financial release. “I’m proud of our associate owners for their dedicated service to our customers and communities.”

The retailer did not comment to the news sources about its real estate strategy.

Publix stock is not publicly traded and is made available for sale only to current Publix associates and members of its board of directors. Effective March 1, 2018, Publix’s stock price increased from $36.85 per share to $41.40 per share.

The retailer’s sales for the fourth quarter of 2017, a 13-week period, were $8.9 billion, a 2.1 percent decrease from last year’s 14-week period of $9.1 billion. It said in its financial report, that excluding the additional week in the fourth quarter of 2016, sales for the fourth quarter of 2017 would have increased 5 percent.

Additional highlights from the report included:

  • Comparable-store sales for the fourth quarter of 2017 increased 3.2 percent
  • Net earnings for the fourth quarter of 2017 were $766.6 million, compared to $544.5 million in 2016, an increase of 40.8 percent
  • Earnings per share for the fourth quarter increased to $1.04 for 2017, up from $0.71 per share in 2016

As buy-side moves and shake-ups continue to unfold, Deli Market News will continue to keep an eye out for all the latest.