Empire Stock (TSE:EMP.A) Jumps after Topping EPS Estimates

Shares of grocery retailer Empire (TSE:EMP.A) jumped today after saying that its customers are actually spending more despite reports suggesting that Canadians are being cautious. Indeed, CEO Michael Medline stated that shoppers are buying more fresh products and making fewer trips to different stores. He also pointed out that fewer purchases are tied to promotions, meaning that there is more confidence in spending. As a result, Empire's Q4 earnings report came in strong, with EPS rising to C$0.74 from C$0.61 last year and beating estimates of C$0.71.
Confident Investing Starts Here:
Furthermore, total sales for the quarter reached $7.64 billion, up from $7.41 billion a year earlier. This was driven by same-store sales growth of 3.8% in food, which offset a 7.8% drop in fuel sales due to the removal of the carbon tax. Overall, total same-store sales increased by 3%, which helped the company raise its dividend from $0.20 to $0.22 per share. Interestingly, Empire said that price inflation in its stores has stayed stable, as it works with more local suppliers while rejecting unnecessary cost increases from vendors.
2026 Outlook
Looking ahead, Empire plans to open 26 new stores in 2026 under its Farm Boy, FreshCo, and Voilà banners in order to grow its market share. In addition, Medline stated that there's a lasting shift in consumer behavior, with many Canadians preferring local retailers and sticking to their new habits.
Separately, RBC analysts, led by five-star analyst Irene Nattel, noted that although Empire still trails competitors in the discount grocery space, converting more stores to FreshCo could help fix that. With inflation still high, more shoppers are turning to discount stores, which makes Empire's expansion plans even more important.
Is Empire Stock a Good Buy?
Turning to Wall Street, analysts have a Hold consensus rating on Empire stock based on four Holds assigned in the past three months, as indicated by the graphic below. Furthermore, the average Empire price target of C$52.50 per share implies 3.9% downside risk. However, it's worth noting that estimates will likely change following today's earnings report.

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