Whole Foods Cooked

Based on the company's sales guidance of 13% to 17% growth and its margin guidance, I expect Whole Foods to earn $1.30 a share for the fiscal year, which ends in September. The current consensus is $1.43. Also, CFO Glenda Chamberlain implied that higher costs and lower margins may stick around for a while.

Mackey defended his company's same-store sales figures. Year to date, the company's comps stood at 6.6%, sharply lower than the 11.5% five-year average. Most retailers would be thrilled with a 6% comp. However, Wall Street analysts wanted to know how far the number would fall. Mackey wouldn't take the bait, but reminded investors that Whole Foods never posted less than a 5% comp in the company's 29-year history.

I sympathize with Mackey. The company has become a victim of its own success. After three straight years of double-digit comps, it's perfectly logical that as the company grows and stores get older, those kinds of numbers will be unattainable.

Whole Foods' proposed merger with Wild Oats was set back, as the company extended the expiration date for its tender offer, due to the FTC raising concerns about competition issues. Mackey seemed befuddled by the government's actions and was afraid to comment because, "We don't want to piss the FTC off." He questioned whether the issue was political rather than commercial.