Can You Invest in Publix Stock?

    Publix has been a wildly successful business, so it is understandable that investors are looking to invest in Publix stock. Publix is an employee-owned grocery business headquartered in Winter Haven, Florida. 

    They serve high-quality fresh products like organic products, vegetables, and even fast food. Publix has 1,286 grocery shops in seven southern states, employing 225,000 people. It also has its own pharmacies. 

    Interestingly, it is the largest firm in the United States that is entirely owned by its employees. A type of company that is not so common to be found. Most companies are usually owned by shareholders or large private investors. Publix on the other hand takes an interesting approach. As it gives its ownership to employees. 

    This means Publix staff are working to keep Publix a top-rated supermarket chain in the Southeast. The company has offices in several states like Alabama, Florida, Georgia, North Carolina, South Carolina, Tennessee, and Virginia. 

    History of Publix

    On September 6, 1930, George Jenkins launched the first Publix grocery shop in Winter Haven, Florida. In 1934, the business had $120,000 in sales. By 1935, he decided to open a second store, the Economy Food Store, in Winter Haven. Despite the Great Depression, his stores were financially successful. 

    George Jenkins, nicknamed “Mr. George” by his personnel, set out an orange garden in 1940 to create Florida’s first supermarket. On November 8, 1940, his “restaurant palace” at 199 West Central Avenue was launched. Complete with linked music, air conditioning, refrigerated cabinets for frozen and refrigerated foods, donuts and flower shops, and electrically driven automatic doors. At the time it was a revolutionary establishment, especially in that region. 

    During WWII, a lack of supplies stopped him from constructing new stores. Jenkins acquired the All American grocery store business with 19 locations in 1945 and renamed it Publix Super Markets. Publix relocated its headquarters from Winter Haven to Lakeland, Florida, in 1951. 

    Building its first distribution warehouse there. At the same time, All American stores began to close, and they were replaced with Publix shops. Publix had $50 million in sales and $1 million in profits in 1956. The donut shop at each location was transformed into a full-service bakery by 1957. 

    Publix’s financials

    The most recent yearly projection for Publix’s retail sales in 2020 was $36 billion. The epidemic has damaged Publix, causing their yearly retail sales to fall from $38.1 billion in 2019 to $36 billion in 2020. 

    On June 26, 2021, Publix announced quarterly revenues of $11.8 billion. Showing how the company was turning around, in a post-pandemic world. Publix announced $23.5 billion in revenue for the six months ended June 26, 2021. 

    On June 26, 2021, Publix reported quarterly net earnings of $1 billion. Earnings decreased as a result of the COVID-19 outbreak in the United States, but the company has been able to overcome the situation in 2021.

    Publix’s reputation 

    Publix is known for its high-quality items and exceptional customer service. Many Floridians like the sandwiches and other fresh meals available in Publix’s delis and pastries. In early 2021, a political crisis negatively affected the reputation of Publix. 

    Some consumers began protesting Publix when The Wall Street Journal revealed that Julie Jenkins Fancelli, an heir to Publix founder George W. Jenkins, gave $300,000 to the group organizing the “Stop the Steal” demonstration for former President Donald J. Trump on January 6, 2021. 

    The gathering came before the January 6 Riot, in which hardline Trump supporters stormed the US Capitol. According to Reuters, Publix management denies any link between Trump and the rally. 

    According to a Publix statement: “Mrs. Fancelli is not a member of Publix Supermarkets, and she is neither associated with our business operations nor represents the company in any manner,” they said in a news release. We are unable to remark on Mrs. Fancelli’s behavior.” 

    Is there a Publix stock you can invest in?

    Despite the fact that Publix is not a publicly traded firm, there is a Publix stock. Publix workers can purchase Publix stock after one year of employment. A few other people, notably George W. Jenkins’ descendants also have access to Publix stock. 

    Employees and others can purchase and sell Publix shares privately for $63.10 per share. The share price increased from $61.30 to $62.30. 

    On August 1, 2021, Publix shares offered $1.33 in earnings per share (EPS). In 2020, the EPS was $1.39. Since Publix claims to be the largest employee-owned corporation in the United States, there are numerous Publix investors. 

    Employee-owned businesses are uncommon in the United States. The majority of businesses in the United States are either privately owned or traded publicly. So in order to invest in Publix stock, you need to be an employee of the company. Therefore it is possible to invest in it, but it is just not available to everyone.

    Will there be a Publix stock IPO? 

    Investors have long speculated about the potential of a Publix stock IPO, which is unsurprising. However, Publix has very little motive to become a public enterprise. The current way the company is set up has allowed them to be incredibly successful. The employee’s ability to invest in Publix stock also gives them a reward to stay in the company

    It is a private firm with a strong regional presence. They don’t require much outside investment or capital. Their equity is simply a form of profit-sharing for their workers. 

    Instead, the only purpose they would become public is to sell off the company. Nevertheless, there is no need for them to do so, given that they are extremely profitable and have absolutely no debt. Even more astonishing is the fact that they almost always purchase or rent new property with cash, meaning that the company’s financials are in great shape. Due to the nature of the grocery retail business, a Publix stock would be considered a defensive stock.

    Perhaps the only situation in which we could see a Publix stock IPO is if the descendants of the founder find themselves in a troubled financial situation. This could push them to access capital in the financial markets, by selling some of their equity.

    Image source: Pub

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