Company: Metro Stock Market Symbol: TSE:MRU
1. Company Background
a. The history of Metro dates all the way back to 1947, where local, independent grocery store owners came together. With the intent of making their products more reasonably priced than large dominant retailers, they founded the Magasins Lasalle Stores Itee. 25 years later, in 1972 the concept of a supermarket was created and Marches d’Aliments Metro Itee become one of the first stores to offer convenience to the public. Not only did the company change its name to Metro-Richelieu Inc, but it also made it first appearance in the Montreal Stock Exchange. This big event eventually led Metro-Richelieu Inc. to acquire the McMahon Distributeur …show more content…
Current Events
a. The CEO, and the chairman work together alongside the board of directors to develop strategies that help increase their company’s profit. Metro’s board of directors is comprised of 14 individuals including the CEO and chairman whom are each representing a Metro committee. Unlink many other dominating grocery store, Metro divides themselves into three sub-corporations; Metro Inc, Metro Richelieu Inc, and Metro Ontario Inc. Each sub-corporations have vice-presidents that oversees a specific subsidiary company (i.e. Metro Ontario Inc. overlooks Food Basics while Metro Richelieu Inc. overlooks Super …show more content…
From July 29th to October 14th 2015, many current events and company event occurred have affected Metro’s closing price on the Toronto Stock Exchange. Firstly on August 12th and onwards, the value of the Canadian Loonie fell. As a result of that, many financial analyst claims that the Canadian supermarket industry will be impacted. They claim that more people will want to spend their money on food and most importantly, fresh produce. This explains why Metro’s closing stock prices started to rise. On September 8th, Metro announced that they are renewing their shares buyback program. The result of this increased the earning per share thus explains the beginning of the increase of the closing price. September 12th 2015 was the date in which Metro Inc. released their third annual report. Their report stated that their sales increased by 4.3% compared to the last quarter and their revenue increased by 6%. On September 18th 2015, financial analysts from Scotiabank recently announced that the predicted price target for Metro Inc. would be $42.00 CAD. A price target is the predicted share price of a company in the next 52 weeks. This announcement explain why the closing price for Metro Inc. continued to increase. Additionally on September 28th 2015, Metro Inc. also announced that they will be releasing their quarterly dividends to their