Case Study

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This case examines the decisions of Deutsche Bank research analyst, Karen Short, in May 2014 while
covering the stock of Whole Foods Market, the leading natural and organic food retailer. Having recently
issued a “buy” recommendation for the stock backed by a strong financial forecast, Short must reevaluate
her decision in the face of a lower-than-expected earnings announcement by the management of the
company and an associated price decline. This case is meant to introduce the foundations of financial
forecasting by exposing students to the mechanics of financial statement modeling and sensitivity
analysis.


Address the following questions:
1. How would you describe Whole Foods’ strategy?
2. Prepare a competitor analysis.
3. How attractive is Whole Foods’ market position? Is it sustainable?
4. What do the financial ratios tell you about the past and the future operating performance of
Whole Foods?
5. Do you agree with the existing financial assumptions in the Deutsche Bank forecast?
Case material
Case material can be found attached.


Report Format
The report has
to be:
1. single line spacing
2. font Times New Romans 11
3. margins should be 1 inch
4. length min 3/max 5 pages (exhibits excluded)

  • 2 months ago
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