ACI is a premier US supermarket operator with over 2,200 stores generating more than $80B in annual revenue while managing significant debt levels and navigating inflationary headwinds.
ACI represents a value opportunity for investors seeking exposure to the essential consumer staples sector with consistent revenue growth above $79B annually. The company's extensive store network and private label strategy offer defensive characteristics that can protect against economic volatility while providing steady dividend coverage. Strategic investments in digital platforms and same-store sales improvements suggest potential margin expansion as the company optimizes its cost structure.
The sharp contraction in net income from $1.51B in 2023 to $958.6M in 2025 signals deteriorating profitability trends that may persist if inflation remains sticky. Significant negative cash flows from investing activities totaling -$1.89B indicate heavy capital expenditure requirements that could strain liquidity if revenue growth slows further. High leverage ratios and ongoing debt repayments create vulnerability to rising interest rates, potentially eroding shareholder value through reduced free cash flow.
Albertsons Companies operates as a leading supermarket operator across the United States, Canada, and Mexico, serving millions of customers with fresh groceries, general merchandise, and pharmacy services. The company's portfolio includes iconic brands like Safeway, Vons, Standard Food Stores, Shaw's, and Tom Thumb, providing essential daily necessities to diverse communities. With annual revenue exceeding $80 billion, ACI focuses on driving growth through store expansion, digital integration, and operational efficiency in the competitive retail sector.
Despite a slight decline in net profit to $958.6M in 2025 compared to 2024, Albertsons Companies maintained robust revenue growth of approximately 1.5% year-over-year, reaching $80.39B. The company successfully managed working capital changes and inventory levels while investing heavily in store improvements and digital capabilities to enhance the customer experience. However, cash flow from financing activities remained negative at -$684.1M due to substantial debt repayments exceeding new issuances, highlighting ongoing balance sheet restructuring efforts.
The US supermarket industry is characterized by consolidation, intense competition between traditional grocers, discount chains, and e-commerce disruptors, all battling margin compression from rising input costs. Market leaders are increasingly focusing on store modernization, personalized loyalty programs, and omnichannel capabilities to retain customers shifting consumption habits. Regulatory changes regarding labor and healthcare continue to impact operational costs across the sector.
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | $77.65B | $79.24B | $80.39B |
| Cost of Revenue | $55.89B | $57.19B | $58.14B |
| Gross Profit | $21.76B | $22.05B | $22.26B |
| Operating Expenses | $19.45B | $19.98B | $20.71B |
| Operating Income | $2.31B | $2.07B | $1.55B |
| G&A | $19.60B | $19.93B | $20.61B |
| Stock-Based Comp | $138.3M | $104.5M | $106.2M |
| D&A | $1.81B | $1.78B | $1.82B |
| Depreciation | $1.43B | $1.33B | $1.35B |
| Amortization | $253.6M | $312.7M | $337.7M |
| Other OpEx | $-147.5M | $43.9M | $95.8M |
| Non-Operating Income | $50.4M | $-186.9M | $-416.4M |
| Pre-Tax Income | $2.36B | $1.88B | $1.13B |
| Income Tax | $422.0M | $293.0M | $171.1M |
| Continuing Ops | $1.94B | $1.59B | $958.6M |
| Discontinued Ops | $-422.0M | $-293.0M | $0 |
| Net Income | $1.51B | $1.30B | $958.6M |
| Minority Interest | $0 | $0 | $0 |
| Net to Common | $1.51B | $1.30B | $958.6M |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Current Assets | $6.27B | $6.29B | $6.56B |
| Cash & Equivalents | $455.8M | $188.7M | $293.6M |
| Inventory | $4.78B | $4.95B | $4.99B |
| Other Current Assets | $1.03B | $1.15B | $1.28B |
| Long-Term Assets | $19.90B | $19.93B | $20.20B |
| Intangibles | $2.47B | $2.43B | $2.32B |
| Goodwill | $1.20B | $1.20B | $1.20B |
| Operating Leases | $5.88B | $5.98B | $6.15B |
| Other LT Assets | $10.10B | $10.24B | $10.44B |
| Total Assets | $26.17B | $26.22B | $26.76B |
| Current Liabilities | $8.43B | $7.46B | $7.25B |
| Accounts Payable | $4.17B | $4.22B | $4.09B |
| Current Leases | $664.8M | $677.6M | $705.5M |
| Other Current Liab | $3.59B | $2.56B | $2.45B |
| Long-Term Liabilities | $16.13B | $16.02B | $16.12B |
| LT Operating Leases | $5.39B | $5.49B | $5.66B |
| Other LT Liab | $10.74B | $10.52B | $10.46B |
| Total Liabilities | $24.56B | $23.47B | $23.37B |
| Shareholders' Equity | $1.61B | $2.75B | $3.39B |
| Paid-In Capital | $2.07B | $2.13B | $2.18B |
| Retained Earnings | $-185.0M | $828.2M | $1.49B |
| AOCI | $69.3M | $88.0M | $94.7M |
| Total L&E | $26.17B | $26.22B | $26.76B |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Net Income (CFO) | $1.51B | $1.30B | $958.6M |
| Non-Cash Adjustments | $1.69B | $1.42B | $2.54B |
| Working Capital Changes | $-345.8M | $-59.1M | $-815.1M |
| Cash from Operations | $2.85B | $2.66B | $2.68B |
| Cash from Investing | $-1.98B | $-1.75B | $-1.89B |
| Debt Issuances | $2.15B | $150.0M | $50.0M |
| Debt Repayments | $1.15B | $950.8M | $250.9M |
| Share Buybacks | $0 | — | $82.5M |
| Dividends Paid | $255.1M | $276.2M | $295.1M |
| Cash from Financing | $-3.37B | $-1.18B | $-684.1M |
| FX Effect | $0 | $0 | $0 |
| Net Change in Cash | $-2.49B | $-270.6M | $104.7M |
| Beginning Cash | $2.95B | $463.8M | $193.2M |
| Ending Cash | $463.8M | $193.2M | $297.9M |
The company's revenue is derived primarily from its Food & Drug segment, which accounts for the vast majority of sales through grocery and pharmacy operations. A secondary but growing stream comes from General Merchandise, offering household essentials and seasonal items to complement core food offerings. International operations contribute additional revenue, though domestic US markets remain the primary focus for strategic growth initiatives.
Persistent inflationary pressures on food and energy costs can squeeze gross margins if pricing power is insufficient to fully pass these costs to consumers. High levels of debt, evidenced by significant cash flow outflows for financing activities, increase interest rate sensitivity and limit flexibility during economic downturns. Intense competition from discount retailers like Aldi and Walmart poses a constant threat to market share and pricing stability. Digital transformation costs and cybersecurity threats in an increasingly online-first retail landscape add operational complexity.
ACI leverages a massive private label portfolio that drives higher margins and customer loyalty compared to national brands. The company benefits from deep local market penetration with over 2,200 stores, allowing for rapid execution of new store openings and targeted marketing campaigns. Strong relationships with suppliers and distributors enable ACI to negotiate favorable terms and maintain inventory turnover efficiency in a volatile supply chain environment.
Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.