The Friday Checkout is a weekly column providing more insight on the news, rounding up the announcements you may have missed and sharing what’s to come.
People throughout the industry spent years closely watching for Instacart’s debut as a publicly traded company. And clearly, nobody was more anxiously awaiting that arrival than company employees and others who were granted stock-based compensation ahead of its IPO.
Well, those incentives have finally vested — and in a big way. In its first quarterly earnings report Wednesday, Instacart said it doled out $2.6 billion in stock-based compensation. That hefty payout more than canceled out the company’s $746 million in net revenue as it swung to a $2 billion loss in the quarter.
CFO Nick Giovanni said during the company’s earnings call that it will take Instacart several quarters for stock-based expenses to normalize. However, he said the company expects to return to profitability in the upcoming fiscal year.
Instacart’s Q3 results beat Wall Street’s forecast as ad sales and higher transaction values helped power the company’s core revenue. But investors don’t seem to have been particularly impressed with the results, as the company's stock price dropped more than 10% the day after the earnings posted. Since going public in early September, Instacart’s stock price has fallen more than 40%.
In case you missed it
Kroger’s holiday ads celebrate diversity
The grocer launched on Nov. 1 a holiday ad campaign that aims to celebrate the “magic of traditions, both new and old.” The campaign features a film titled "Cuisine Exchange" that’s just over a minute long and spotlights family, global flavors and connection through food with its animated Kroji characters to the soundtrack of Ed Sheeran’s “Photograph.”
Along with the film, Kroger is rolling out across its retail locations nationwide a “Holiday Remix” playlist, which will be available on Spotify and features classic holiday songs recorded in a variety of languages.
Publix buys two suburban Tampa shopping centers
The Florida-based grocer is expanding its real estate portfolio with the purchase of two Central Florida shopping centers that currently have Publix as their anchor tenant, according to local news reports. Publix owns more than 280 of the shopping centers where its stores are located, according to the company’s website.
KeHe Distributors hits 99.69% pick-rate accuracy
The distributor in natural and organic, specialty and fresh products announced this week that it has not only improved pick-rate accuracy, but also achieved more accurate fill rates and boosted order precision for retailers. The efforts are part of a company-wide campaign that includes strategies for operational excellence, growth and partner success, KeHe said.
Number of the week: $764 million
That’s the total revenue Instacart recorded for its third quarter, which ended Sept. 30. That metric was up 14% year-over-year, driven by the strength of its advertising business and its efforts to make online fulfillment more efficient.
What’s ahead
Earnings galore!
Target reports its third-quarter results on Wednesday, followed by Walmart on Thursday. BJ’s Wholesale Club is scheduled to release its financial results for Q3 next Friday morning.
Inflation figures due
The U.S. Bureau of Labor Statistics is set to unveil Consumer Price Index data for October on Tuesday. The numbers will provide further clarity about the direction prices are going as the rates of food-at-home and overall inflation have moderated in recent months.
Latest retail sales stats
The U.S. Census Bureau plans to release retail sales data for October on Wednesday, providing insight into how inflation and other factors affected sales for the grocery industry
Impulse find
What’s cookin’, good lookin’?
Creative partnerships are nothing new in food retail. But a new pairing between meal kit company HelloFresh and dating app Tinder raised a few eyebrows this week.
The two companies say they are helping couples “go from casual to committed” with their exclusive Date Night Delights recipes series. While supplies last, customers can also purchase a limited-edition collection of spice bundles meant to enhance flavor and “stimulate the senses.”
The Date Night Delights boxes are available exclusively for HelloFresh subscribers and feature six recipes curated specially for couples. Each recipe includes appetizers, mains and desserts, per the announcement.
