Here are a few analogies to describe Weis Markets:

• Weis Markets is like a regional version of Kroger.
• It's similar to ShopRite for Pennsylvania and surrounding states.

• Food Products: Sells a comprehensive selection of groceries, fresh produce, meats, seafood, dairy, frozen foods, deli items, prepared meals, and baked goods.
• Beverages (Alcoholic): Offers beer and wine for sale in authorized supermarket locations.
• Pharmacy Services: Provides prescription fulfillment and a variety of over-the-counter health products.
• Fuel: Operates gas stations, often situated alongside its supermarket stores.
• General Merchandise: Sells non-food items including health and beauty care products and household essentials.

Weis Markets (WMK) primarily sells to individual consumers and households through its chain of supermarkets. Based on its business model as a retail food seller, its major customers can be categorized as:

• Households and Families: These customers represent the core demographic for a supermarket chain, purchasing groceries, dairy products, meats, fresh produce, bakery items, and household products for their daily consumption and household needs.

• Local Community Members: Individuals living within the geographic proximity of Weis Markets' 197 stores across Pennsylvania, Maryland, Delaware, New Jersey, New York, West Virginia, and Virginia. These customers rely on Weis Markets for their regular and incidental shopping needs.

• Convenience-Oriented Shoppers: Customers who utilize the broader range of services offered, such as deli and prepared foods, pharmacy services, beer and wine, or fuel (Weis Gas-n-Go). This category also includes those seeking convenience through services like Weis 2 Go for online orders and pickup.

Key Risks to Weis Markets (WMK)

1. Intense Competition and Price Sensitivity: Weis Markets operates in a fiercely competitive retail food industry, facing pressure from national chains, discount grocers like Aldi, supercenters such as Walmart and Costco, and growing e-commerce platforms including Amazon and Instacart. This competitive landscape, coupled with consumers' increasing price consciousness, can lead to price wars, putting significant pressure on Weis Markets' sales, market share, and already thin profit margins.
2. Rising Operating Costs and Margin Pressure: The grocery sector is characterized by thin profit margins, which are further strained by escalating operating costs. Weis Markets, like other grocers, faces challenges from persistent inflation, increasing labor costs due to shortages and higher wages, rising energy prices, and elevated rent. Additionally, disruptions in the complex supply chain, caused by factors such as natural disasters, labor shortages (e.g., truck drivers), and geopolitical events, contribute to higher inventory costs and impact product availability, all of which erode profitability.
3. Internal Control Weaknesses and Financial Reporting Issues: Weis Markets has recently disclosed significant internal control weaknesses and financial reporting problems. The company restated financial statements for 2023–2024 and several interim periods in 2025 due to overstated inventory at one of its meat manufacturing plants, linked to misconduct by a former non-executive employee. This has led to a reduction in retained earnings and the identification of material weaknesses in internal control over financial reporting as of December 27, 2025. Such issues can significantly impact investor confidence, lead to financial repercussions, and indicate underlying operational and governance challenges.

The clear emerging threat to Weis Markets is the aggressive expansion of hard discounters, such as Aldi and Lidl, within their operating regions. These retailers employ a fundamentally different, lower-cost business model characterized by a limited assortment of predominantly private-label goods and highly efficient operations, allowing them to offer significantly lower prices than traditional supermarkets. This competitive pressure directly threatens Weis Markets' market share, sales volume, and profit margins, particularly for everyday grocery staples, by siphoning off price-sensitive customers.

Addressable Markets for Weis Markets' Main Products and Services (U.S.)

• Grocery/Supermarket Sales: The addressable market for U.S. grocery sales totaled an estimated $920.3 billion in 2025.
• Pharmacy Services: The U.S. retail pharmacy market size is estimated to reach approximately $670.6 billion in 2025.
• Retail Beer and Wine: The U.S. alcohol market was valued at $530 billion in 2023. Supermarkets accounted for 20% of the alcoholic beverage market in 2024, indicating an addressable market of approximately $106 billion for supermarkets in the U.S.
• Retail Fuel: Gasoline sales in U.S. convenience stores, a relevant segment for Weis Markets' "Weis Gas-n-Go" operations, totaled $532.2 billion in 2023.

Here are 3-5 expected drivers of future revenue growth for Weis Markets (WMK) over the next 2-3 years:

1. New Store Openings and Existing Store Remodels: Weis Markets is consistently investing in its physical footprint through significant capital expenditures for new store openings and major remodels of existing locations. This expansion and modernization strategy is expected to contribute to future sales growth.
2. Growth in E-commerce Sales: The company has demonstrated strong growth in its e-commerce channel, with a reported 21% increase in fiscal year 2025. Continued focus and investment in online shopping and delivery services are anticipated to be a key revenue driver.
3. Increased Pharmacy Volume: Weis Markets experienced elevated pharmacy volume, partially attributed to a competitor's exit from the market. Expanding and enhancing its pharmacy services can continue to drive customer traffic and revenue.
4. Strategic Pricing Investments: The company has utilized strategic pricing adjustments as a method to support sales growth, even amidst cautious consumer spending. This approach, aimed at maintaining competitiveness and attracting customers, is expected to continue contributing to revenue.
5. Enhancing Efficiencies and Integrating Technologies: Weis Markets is actively working to improve efficiencies and integrate new technologies to enrich the customer experience. These initiatives are expected to foster customer loyalty and attract new shoppers, indirectly leading to revenue growth.

Share Repurchases

• In 2025, Weis Markets repurchased 2.15 million shares for $140 million at $65 per share from two family trusts.
• This transaction was executed at a discount, ranging from 8.4% to 15.6% below various trading averages, to assist the selling trusts with estate tax obligations and maintain the Weis family's controlling interest.
• The buyback was funded using existing cash reserves and proceeds from the sale of marketable securities.

Outbound Investments

• In Q1 2025, Weis Markets acquired the former Saylor's Market in Newville, PA.
• The company also acquired two Sunnyway Foods supermarkets in Pennsylvania in Q1 2025.

Capital Expenditures

• Weis Markets planned for record investments in its long-term capital expenditure program for 2024 and 2025.
• Capital spending in 2025 totaled $205.2 million, supporting five new store openings and seven major remodels.
• The capital expenditure program focuses on new store construction, expansion and remodeling of existing units, and technology upgrades, with approximately one-third of the budget dedicated to new stores annually.