EPS of $1.11 matched estimates; revenue of $5.11B marginally beat estimates of $5.08B. EBITDA of $508M beat estimates by 4.4%. Price sensitivity and a competitive backdrop should continue to shape Metro's food business through 2026, with discount banners and private label driving traffic and mix. Fiscal 2Q food comparisons rose 1.8%, reflecting steady but moderating growth, while new stores are contributing more to sales and traffic. With promotions elevated and consumption flat, volume gains will likely stay constrained, increasing reliance on mix. Pharmacy momentum is solid on prescription expansion tied to GLP-1s, specialty drugs and clinical services, while front-store trends are improving. Gross margin was flat as inflation offset productivity and lower shrink. Expanding efficiency gains should help fund selective price reinvestment, but competition and cost pressure suggest margin improvement will be measured. Same store sales were up 1.8%, down from 5.3% in the prior period. Pharmacy SSS were 5.1%, also down from 7.0%.
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