Can You Buy Safeway Stock in 2024? (All You Need to Know)
Grocery giant Safeway was taken private after being acquired by Albertsons in a $9.2 billion deal in 2015. But with grocery stocks continuing to turn profits amid shifting consumer patterns, you may be wondering if it’s possible to invest in Safeway stock nearly a decade after its public trading ended.
While Safeway itself no longer trades publicly, investors still have an avenue to gain exposure to the well-known supermarket chain through its current parent company and owner Albertsons, which completed an initial public offering (IPO) in 2020.
Investing in Albertsons (ACI) Stock
Albertsons’ Class A common shares trade on the New York Stock Exchange under the ticker “ACI.” Here is a brief rundown of why Albertsons presents a compelling investment case:
- Well-run company delivering consistent growth and margin expansion
- 7.5% increase in comparable store sales in 2022, surpassing Kroger and other rivals
- Leading market position on West Coast and growing presence back East
- Initiating dividends and still only trading at 12x forward earnings
Below is a snapshot of how Albertsons’ financial performance and stock stacks up against grocery giants Kroger (KR) and Ahold Delhaize (ADRNY):
| Company | Ticker | Market Cap | Revenue | Net Margin | 2022 Sales Growth | 2023 P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
| Albertsons | ACI | $13B | $72B | 1.9% | 7.5% | 12 | 1.8% |
| Kroger | KR | $34B | $148B | 1.7% | 6.9% | 14 | 2.0% |
| Ahold Delhaize | ADRNY | $32B | $89B | 4.0% | 6.7% | 11 | 4.2% |
Data sources: Companies, Yahoo Finance
Albertsons boasts the top sales growth and strongest margins among these peers. Initiating a dividend in 2021 also makes it stand out as the “new kid on the block.” Albertsons appears poised to continue taking market share with same-day delivery capabilities rivaling e-commerce giants.
Meanwhile, Albertsons’ low double-digit P/E multiple prices it at a discount and offers investors room for stock price appreciation.
Can You Buy Safeway Stock Directly?
While Albertsons gives exposure to Safeway by owning the nationwide supermarket brand, investors cannot directly buy shares of Safeway stock. Safeway was publicly traded prior to the Albertsons deal under the ticker “SWY”. However, since being taken private, individuals can no longer purchase Safeway stock outright.
So buying Albertsons stock is currently the only option for investing in parent company that owns all Safeway banner stores. Think of it as owning a slice of the whole pie rather than just a single piece.
Grocery Stocks Outlook Going Forward
The pandemic propelled rapid changes in consumer shopping behavior over the past two years. Early pantry-loading panic buying has given way to stickier e-commerce demand. Online grocery sales grew nearly 8% in 2022 according to eMarketer, now accounting for 13% of all food and beverage retail spending.
Top grocers adaptingbest to this new digital frontier while maintaining cost discipline are poised to gain market share. With same-day options rolling out across nearly every Albertsons banner including Safeway stores, Albertsons appears best positioned among peers to capitalize.
Meanwhile, grocery provides recession resistance if economic storm clouds materialize. Albertsons also continues to unlock merger synergies and fuel further efficiency with technology investments. With grocery spending perceived as non-discretionary, Albertsons merits consideration as a defensive name for investor portfolios.
Can You Buy Albertsons Stock in Canada?
While Safeway itself operates limited stores outside the U.S., Canadian investors can purchase stock in its corporate parent Albertsons on the New York Stock Exchange.
The big five Canadian banks – RBC Direct Investing, TD Direct Investing, BMO InvestorLine, CIBC Investor’s Edge, and Scotia iTRADE – all allow stock trading on major U.S. exchanges. Expect to pay transaction fees and currency conversion costs for buying Albertsons shares.
Investors outside the U.S. should also confirm tax implications for dividend payments and capital gains from foreign stock holdings.
The Bottom Line
Safeway becoming a private entity eliminated the opportunity for ongoing direct exposure to its stock. However, through shares of NYSE-listed Albertsons Companies, investors can still capture an ownership stake in the well-run parent firm steering Safeway and other grocery banners.
With Albertsons exhibiting steady growth and e-commerce leadership amid positive sector tailwinds, its stock presents a compelling pick-and-shovel play for investing in the future of food retail.
