L.TO Stock Today: Q4 EPS Up, $2.4B Expansion Plan — February 25
Loblaws stock is in focus today after Loblaw reported Q4 revenue of C$16.38B, boosted by a 13th week, and adjusted EPS of C$0.67. Management guided 2026 EPS growth to the high single digits and announced a C$2.4B plan to open 70 stores and enhance distribution. The strategy leans on discount banners, pharmacies, and private‑label strength to meet value‑seeking demand. On the TSX, L.TO last traded near C$67.52, within a 52‑week range of C$43.78 to C$68.94. We break down what this means for Canadian investors.
Q4 results and 2026 outlook
Loblaw posted Q4 revenue of C$16.38B, which included a 13th week. Adjusted EPS came in at C$0.67. The extra week lifts reported sales, so investors should watch 12‑week comparable trends for a cleaner view. Media reports noted profit and revenue growth tied to strong food and pharmacy demand, alongside value formats and private label support source.
For 2026, management expects adjusted EPS to grow at a high single‑digit rate. Mix and margin support should come from discount banners, pharmacies, and private‑label penetration. This positions the company for stable cash flows as consumers trade down. We think investors should track gross margin, pharmacy script volumes, and same‑store sales to confirm the outlook as the year progresses.
C$2.4B expansion: stores, pharmacy, distribution
Loblaw plans to invest C$2.4B to open 70 stores and upgrade its network. The buildout prioritizes discount formats, matching value‑seeking behaviour across Canada. More locations near dense suburbs can deepen traffic and loyalty, while private‑label offers support margins. The company’s pivot toward discount banners has been highlighted by national coverage source.
The plan also expands pharmacies under the Shoppers Drug Mart banner and upgrades distribution. Pharmacy growth can add steady, higher‑frequency trips and prescription revenue. Distribution investments may reduce stockouts and improve online fulfillment, which supports both discount and conventional stores. Together, these steps strengthen Loblaw’s defensive profile and its ability to serve value‑oriented households.
L.TO stock today: price, trend, valuation
TSX L share price sits near C$67.52, with today’s range at C$66.69 to C$69.59 and a 52‑week high of C$68.94. RSI is 43.12, while CCI at -219 signals oversold conditions. ADX at 28.75 points to a strong trend. Bollinger bands centre on C$66.10. These indicators suggest consolidation risk, but improving momentum if price holds above the mid‑band.
On fundamentals, TTM P/E is about 7.7, with price‑to‑sales near 1.19. Dividend yield is roughly 1.47% with a payout ratio near 32%. Debt‑to‑equity stands around 1.75 and free cash flow yield is about 4.85%. These metrics imply a reasonable valuation for a defensive consumer name, provided execution on store openings and logistics stays on track.
What it means for Canadian investors
Grocery and pharmacy are classic defensive categories. Loblaws stock benefits from discount formats, pharmacy exposure, and private‑label depth. Over the past year, shares rose about 37%, with a 6‑month gain near 12%. We see the C$2.4B plan as a growth and resilience driver that could support earnings and cash generation through different economic conditions.
Catalysts include the 70‑store rollout, pharmacy traffic, and margin mix from private label and discount banners. The next earnings update is scheduled for April 28, 2026. Risks include execution on the buildout and elevated leverage levels. We also note system scores: Stock Grade B+ (BUY) and a Company Rating of A (Buy) dated Feb 24, 2026.
Final Thoughts
Loblaws stock drew attention today as Q4 adjusted EPS reached C$0.67 and management set a C$2.4B plan to open 70 stores and upgrade distribution. The focus on discount formats, pharmacies, and private‑label offers a clear, defensive pathway to support high single‑digit EPS growth in 2026. For investors in Canada, the near‑term checklist is simple: watch same‑store sales, pharmacy scripts, and gross margin, then confirm that distribution upgrades reduce costs and stockouts. On valuation, TTM P/E near 7.7 and a 1.47% yield look reasonable for a stable operator. With shares around C$67.52, maintaining price above the mid‑Bollinger band could keep momentum constructive. Position sizing and patience remain key while execution unfolds.
FAQs
Is Loblaws stock a buy right now?
Our system shows a Stock Grade of B+ (BUY) and a Company Rating of A (Buy) as of Feb 24, 2026. The case rests on defensive demand in grocery and pharmacy, plus a C$2.4B expansion plan. As always, align any purchase with your risk tolerance and time horizon.
What drove Loblaw earnings in Q4?
Q4 revenue was C$16.38B (including a 13th week) and adjusted EPS was C$0.67. Strength came from discount banners, pharmacies, and private‑label products as Canadians sought value. These factors supported mix and margins, helping both sales and profit trends in the quarter.
What is the TSX L share price and range today?
Loblaws stock last traded near C$67.52. Today’s range was C$66.69 to C$69.59, and the 52‑week range is C$43.78 to C$68.94. Technical indicators show RSI at 43.12 and CCI at -219, suggesting cautious momentum with potential stabilization if the price holds above the mid‑Bollinger band.
What is Loblaw’s 2026 outlook?
Management guided adjusted EPS growth to the high single digits for 2026. The plan leans on discount formats, pharmacy expansion under Shoppers Drug Mart, and private‑label strength, supported by a C$2.4B capital program to open 70 stores and enhance distribution capacity.
How does the Shoppers Drug Mart expansion help growth?
Pharmacies add frequent trips, steady prescription revenue, and front‑store basket potential. Expanding Shoppers Drug Mart supports traffic and mix, while distribution upgrades should improve availability. Together, these steps can support margins, cash flow, and the overall investment case for Loblaws stock in Canada.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.