Leadership and Financial Performance Summer 2011

Prof: Amy Burnett, Ph.D.WFM: Update #1

By Marion Sanchez

Presentation Agenda Thesis Short Story Why I chose WFM P/E Ratio & Market

Cap Corporate Leadership

& Ethics

Recent Company Strategies

Latest News Reference List Questions and

answers

Thesis StatementOptions:

BuySellHold

Short Story

Short Story Founded in Austin, Texas (1980) by

John Mackey and Renee Lawson Hardy, owners of Safer Way Natural Foods

Craig Weller and Mark Skiles, owners of Clarksville Natural Grocery

Memorial Day in 1981, worst flood in 70 years destroyed all assets

With support, the store opened 28 days later In 1984, WFM began expansion out of Austinhttp://www.youtube.com/watch?v=i3bAu6GQApE&feature=BFp&list=FL9BzvZpWGB4c&index=2

Why I chose WFM?

PerseveranceCreativityPurpose

Why I chose WFM? Mission statement

Whole Foods, Whole People, Whole Planet Local Producer Loan Program Seafood Sustainability Avoiding genetically engineered foods Outlook for the future Global community

Whole Food Planet Foundation Whole Foods Kids Foundation

I am a customer!

P/E Ratio & Market Cap Sector: Services Industry: Grocery Store As of July 27, 2011

Trade: 65.43 Market Cap: 11.50B P/E: 37.67

Competitors Kroger (KR) Safeway Inc (SWY) Super Valu (SVU)

Corporate Leadership & Ethics

In 2006, John Mackey (Co-Founder) slashed his salary from $1 million to $1. Additionally, from that point on, proceeds from his stock options were donated to charity.

All WFM’s executives are expected to make similar, but smaller, sacrifices.

For nearly 20 years, WFM has capped compensation for top management. Today, it limits executive pay to 19 times the average full-time worker's salary.

"Fewer things harm an organization's morale more than

great disparities in compensation.” John Mackey."When a workplace is perceived as unfair and greedy, it

begins to destroy the social fabric of the organization.“ John Mackey.

Corporate Leadership & EthicsTop compensated officers: Mr. Walter Robb, Co-Chief Executive Officer and

Director Total annual compensation: $453.2K

Mr. John P. Mackey, Co-Founder, Co-Chief Executive Officer Total annual compensation: $1.0

Mr. A. C. Gallo, President and Chief Operating Officer Total annual compensation: $404.0K

Ms. Glenda J. Chamberlain, Chief Financial Officer Total annual compensation: $381.8K

Mr. James P. Sud, Executive Vice President of Growth Total annual compensation: $421.5K

Recent Company Strategies Co-CEO Walter Robb announced that

the company aims for 1,000 stores, including 35 in Canada.

In March 2011, WFM announced an easy to apply and low interest loan program for farmers.

Latest News Whole Foods named national retail

powerhouse (ABJ) ‘Non-GMO’ seal identifies foods mostly

biotech-free (NYT)

Reference List Hadlock, R (News Anchor). (September 14, 2010). Austin News KXAN. Austin: KXAN. Retrieved from

http://www.youtube.com/watch?v=i3bAu6GQApE&feature=BFp&list=FL9BzvZpWGB4c&index=2 (2011). Whole Food History. Retrieved from

http://www.wholefoodsmarket.com/company/history.php (July 17, 2011). YCharts. Retrieved from http://ycharts.com/companies/WFM/market_cap (July 17, 2011). Y Finance. Retrieved from http://finance.yahoo.com/q/in?s=WFM+Industry Hamner, S. "Whole Foods CEO John Mackey slimmed down the grocery chain's executive salaries,

resulting in a healthier, happier company“. CNN Money (2006). Retrieved from http://money.cnn.com/galleries/2007/biz2/0705/gallery.contrarians.biz2/3.html

Lomax, A. “Whole Foods' Cornucopia of Growth”. The Motley Fool. (July 19, 2011). Retrieved from http://www.fool.com/investing/general/2011/07/19/whole-foods-cornucopia-of-growth.aspx

Furness, A. “Whole Foods offering loans to farmers”. Austin Business Journal. (March 25, 2011). Retrieved from http://www.bizjournals.com/austin/print-edition/2011/03/25/whole-foods-offering-loans-to-farmers.html

Silva, T. “Whole Foods named national retail powerhouse”. Austin Business Journal. (July 11, 2011). Retrieved from http://www.bizjournals.com/austin/news/2011/07/11/whole-foods-named-national-retail.html

Reference List Neuman, W. “‘Non-GMO’ Seal Identifies Foods Mostly Biotech-Free”. The New York Times. (August

28, 2009). Retrieved from http://www.nytimes.com/2009/08/29/business/29gmo.html?ref=wholefoodsmarketinc

http://images.search.yahoo.com/images/view?back=http%3A%2F%2Fimages.search.yahoo.com%2Fsearch%2Fimages%3Fp%3Dwhole%2Bfoods%2Bmarket%26fr2%3Dpiv-web&w=1400&h=937&imgurl=deep.co.uk%2Fwebmedia%2Fportfolio%2Fart_direction%2Fbig%2Fwhole_foods_market%2F01_wfm.jpg&rurl=http%3A%2F%2Fdeep.co.uk%2Fportfolio%2Fart_direction%2Fgallery%2Fwhole_foods_market%2F1%2F&size=310KB&name=Whole+Foods+Mark...&p=whole+foods+market&oid=240b717b9b211bb38ddffab43c753f30&fr2=piv-web&no=2&tt=131000&sigr=127lfjtbq&sigi=12did7uiq&sigb=12d3irou7&.crumb=N8SjodviEiT

http://wholefoodsmarket.com/pressroom/files/2010/07/10thlamar1980.jpg http://wholefoodsmarket.com/pressroom/files/2010/07/1981-flood_0.jpg http://wholefoodsmarket.com/pressroom/files/2010/07/austin-lamar-landmarkstore.jpg http://wholefoodsmarket.com/pressroom/files/2010/07/whole-trade-guarantee-bananas.jpg

Any questions?

Thank you!