European Food Retail: The Book of Margin – Assessing the management playbook

Research evidence excerpt

J P M O R G A N

Europe Equity Research

17 August 2026

European Food Retail

The Book of Margin – Assessing the management

playbook

JPM Research offers a holistic set of materials to track the sector, recapped within.

With this particular product, we provide a comprehensive framework of questions

designed to support investors in their interactions with food retail management

teams – we are adding questions for Domino’s mgmt. with this version. As is well

understood, the sector is characterized by thin margins, high operational

complexity, and rapidly evolving competitive and macroeconomic dynamics –

suggesting that the success of management execution often determines the spread

between outperformers and laggards. We have designed this playbook to organize

the key questions pertaining to each retailer, specifically focusing on the critical

value drivers, lesser-understood market opportunities, valuation gaps, as well as

questions that can help investors identify early warning signs/ prolonged

dissonance between guidance and actual outcomes. We are Overweight TSCO,

SBRY, JMT, GRG, and Underweight AD, BME, CA, COLR, DOM.

European Food Retail

Borja Olcese AC

(34-91) 516-1511

J.P. Morgan Securities plc

Palak Garg

(91-22) 6157-5102

J.P. Morgan India Private Limited

Specialist Sales contact details:

Olivia Petronilho - Specialist Sales European Consumer

(44-20) 3493-3709

Contents

Tesco: A high-quality compounder at a discount

Sainsbury’s: Past the Argos overhang?

Jeronimo: Margin outperformance drives earnings

upside risk

Ahold-Delhaize: Cracks in the investment case

Carrefour: Between a rock and a hard place

B&M: The reset playbook

Colruyt: Price dislocation?

Greggs: On the right path for CF & capital return

inflection

Domino’s: Cautious thesis remains intact

Appendix