Most analysts were looking for Winn-Dixie to record a loss in the last quarter. Instead, the company surprised Wall Street with a profitable quarter that has the supermarket chain's CEO Peter Lynch feeling good about its prospects.
"All the key indicators are rocking and rolling the right way," he told The Times-Union.
"I'm extremely pleased with our progress in the second quarter and the first half of the year," he added. "The company is executing our turnaround plan flawlessly."
For the quarter, Winn-Dixie saw a 0.5 percent increase in same store sales while achieving gross profit margins of 26.7 percent. Its gross profit number was a percentage point higher than the same period a year earlier.
Some have questioned Winn-Dixie's ability to compete against the likes of Publix and Wal-Mart, particularly in an economic environment where consumers are throttling back on purchases.
Mr. Lynch doesn't share those concerns. "Supermarkets do well in tough times," he said.
Discussion Question: Has Winn-Dixie found its niche to achieve success in the competitive Florida grocery market? What do you see as the challenges and opportunities ahead for the chain?