Entering Fiscal 2027 With a "Profitable Growth" Mindset

Research evidence excerpt

Entering Fiscal 2027 With a "Profitable Growth" Mindset

June 18, 2026 | 16:40 ET~

Empire Company

EMP.A-TSX Rating Price: Jun-17 Target ↑ Total Rtn Retailing/Consumer

Market Perform $51.00 $55.00 10%

Étienne Ricard, CFA Analyst

etienne.ricard@bmo.com (416) 359-5296

Emily Foo, CFA VP Associate

Entering Fiscal 2027 With a "Profitable Growth" emily.foo@bmo.com (416) 359-6484

Legal Entity: BMO Nesbitt Burns Inc.Mindset

2YR Price Volume Chart

Bottom Line: 65

Under a recently-appointed leadership team, Empire is entering fiscal 2027 with a 60

"profitable growth" mindset focused on rising square footage growth (especially in 55 50

discount), increased emphasis on pharmacy, and SG&A discipline. To the extent Empire 45 3

remains expense-disciplined, there could be a case for improved visibility into 8%+ 40 2

earnings growth. 35 1

30 0

Dec Jun Dec Jun

Key Points LHS: Price (C$) / RHS: Volume (mm) Source: FactSet

Company Data in C$

Accelerating square footage growth. Empire is guiding for +1.5% square footage

Dividend $0.97 Book Value $22.21growth in fiscal 2027 (2026: +1.1%), underpinned by 20+ new store openings and the

potential for ~70 over the next three years. Next year, ~75% of the growth should Yield 1.9% Shares O/S (mm) 224.3

be discount-focused with management seeing white space given Empire's under- Net Debt (mm) $6,686 Market Cap (mm) $11,440

representation in this market segment. Overall, Empire expects the gap between food BMO Estimates in C$

sales and same-store sales to further expand over time (i.e., +0.5% recently). For (FY-Apr.) 2025A 2026A 2027E 2028E

context, Metro and Loblaw are also guiding for 1.5%+ square footage growth.

Revenue $31,277 $31,950 $32,956↑ $34,274↑

Pharmacy strategy taking clearer shape. On the call, management emphasized