Albertsons’ third quarter was met with a negative reaction from the market as management pointed to a consumer environment marked by pressures across income segments and continued caution in discretionary spending. CEO Susan Morris highlighted the company’s focus on targeted price investments and scaling digital engagement to offset macroeconomic challenges, while President and CFO Sharon McCollam noted sequential improvements in core grocery categories due to these actions. Management characterized the competitive landscape as increasingly promotional, but emphasized that their loyalty and AI-driven personalization helped drive resilience. Morris described the performance as evidence of Albertsons’ ability to “execute with discipline and urgency” despite industry and policy headwinds.
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Albertsons (ACI) Q3 CY2025 Highlights:
- Revenue: $18.92 billion vs analyst estimates of $18.88 billion (2% year-on-year growth, in line)
- Adjusted EPS: $0.44 vs analyst estimates of $0.40 (10.6% beat)
- Adjusted EBITDA: $848.4 million vs analyst estimates of $825 million (4.5% margin, 2.8% beat)
- Adjusted EPS guidance for the full year is $2.12 at the midpoint, missing analyst estimates by 1.2%
- EBITDA guidance for the full year is $3.85 billion at the midpoint, in line with analyst expectations
- Operating Margin: 1.6%, in line with the same quarter last year
- Locations: 2,257 at quarter end, down from 2,267 in the same quarter last year
- Same-Store Sales rose 2.2% year on year, in line with the same quarter last year
- Market Capitalization: $8.83 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Albertsons’s Q3 Earnings Call
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Mark Carden (UBS) asked about the sustainability of price investments amid heightened competition. CEO Susan Morris explained that Albertsons employs a targeted, data-driven approach and will continue to refine its pricing strategy while balancing value and margin.
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Leah Jordan (Goldman Sachs) inquired about the company’s confidence in achieving its long-term growth algorithm despite regulatory headwinds and industry volume pressure. Both Morris and President/CFO Sharon McCollam reiterated their belief in the “Customers for Life” strategy and productivity agenda as key levers.
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Edward Kelly (Wells Fargo) probed the levers Albertsons can pull if volume trends remain weak, and about the pace of cost savings. Morris and McCollam highlighted the agility of their digital and productivity initiatives, while emphasizing that cost savings are being reinvested in value and technology.
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John Heinbockel (Guggenheim Securities) asked about wallet share among loyalty tiers and the potential for market exits or asset redeployment. Morris said digitally engaged and pharmacy customers spend significantly more, and that the company is evaluating its real estate footprint for optimization.
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Rupesh Parikh (Oppenheimer & Co.) sought clarity on gross margin trends and the potential impact of the GLP-1 pill on pharmacy profit. McCollam indicated that gross margin benefits from productivity will continue, but the GLP-1 pill is not expected to materially change EBITDA in the short term.
Catalysts in Upcoming Quarters
In upcoming quarters, the StockStory team will monitor (1) the adoption and profitability trajectory of digital and AI-powered initiatives, (2) the impact of regulatory changes, such as the Inflation Reduction Act, on pharmacy sales and comp-store trends, and (3) execution of cost productivity programs—especially as Albertsons targets $1.5 billion in cumulative gains. Updates on store network optimization and the pace of loyalty membership growth will also serve as important indicators of strategic progress.
Albertsons currently trades at $17.18, in line with $17.16 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free).
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