Empire Stock Surges on Strong Q4 Earnings and Consumer Spending Resilience

Empire Company Limited (TSE:EMP.A) shares rallied sharply after reporting better-than-expected quarterly earnings, defying broader concerns about Canadian consumer caution. The grocery chain posted Q4 EPS of C$0.74, surpassing both last year's C$0.61 and analyst estimates of C$0.71. CEO Michael Medline attributed the performance to shifting shopping patterns—customers are purchasing more fresh goods, consolidating trips, and showing less reliance on promotions.

Total sales climbed to C$7.64 billion, up 3.1% year-over-year, fueled by 3.8% growth in food same-store sales. This offset a 7.8% decline in fuel revenue following carbon tax removal. The company raised its dividend to C$0.22 per share, signaling confidence as inflation stabilizes through localized supplier networks. Empire plans to expand with 26 new Farm Boy and FreshCo locations by 2026.