WMK | Market Cap: $1.9B (07/13/26)
Industry:
Consumer Distribution & Retail

DESCRIPTION

Weis Markets is a regional supermarket chain operating 202 stores across Pennsylvania and six surrounding mid-Atlantic states. Founded in 1912 in Sunbury, Pennsylvania, the company remains majority-controlled by the founding Weis family, which owns approximately 61% of shares outstanding. Stores average about 49,000 sq ft and sell a full range of conventional supermarket products — groceries, fresh foods, deli, prepared foods, pharmacy services, and fuel. Pennsylvania accounts for 120 of the 202 stores, and online ordering is available at 195 locations with drive-thru pickup or home delivery through third-party partners. Grocery (center store and fresh) accounts for roughly 81% of net sales, pharmacy roughly 14% and growing, and fuel roughly 5%. Gross margins are thin at roughly 25%, typical for conventional supermarkets, and operating margins run around 2-3%, with employee-related costs representing roughly 59% of operating expenses. Weis self-distributes approximately 52% of store inventory through its own distribution center in Milton, Pennsylvania, which provides some cost control. The company grows primarily through organic store openings, remodels, and small acquisitions, with capex ramping to $205M in FY25. Weis carries no meaningful long-term debt and holds a sizable investment portfolio that generates supplemental income. In FY25, Weis disclosed a restatement of FY23 and FY24 financials after discovering that a single employee intentionally overstated inventory at a manufacturing plant over multiple years, reducing FY24 net income by approximately $3.9M, and the company has identified a material weakness in internal controls it is working to remediate.

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