SALISBURY, N.C. -- Food Lion here plans to buy back from shareholders $100 million worth of stock equal to about 4% of its 484 million outstanding shares -- a strong indicator of the company's confidence in its future growth.
formance in 1994 puts it "among the top companies in the industry." Yet its stock is undervalued, he added, which makes the repurchase program "a good investment in Food Lion's future" both for management and shareholders.
Smith would disclose neither the purchase price nor the active dates. Salomon Brothers is the purchasing agent.
As reported, Food Lion's sales for the year ended Dec. 31 rose 3.9% to a record $7.9 billion and earnings soared to $152.9 million, nearly 40 times the previous year's earnings. Same store sales rose 3.3%.
Food Lion opened 30 new stores and remodeled or expanded 65 during the year. Smith said the chain plans to open 50 new sites and remodel another 120 in 1995, which would bring its total retail space to nearly 30 million square feet.