What changed in this filing

/stocks — the workspaceLOADING

Item 1A. Risk Factors

2024-12-27 compared with 2023-11-29 · 36 added, 15 removed, 70 unchanged (42% of the section changed)

6 unchanged sentences

The Company’s headquarters, warehouse and distribution center and milk processing and packaging plant are located in North Carolina and all of the Company’s stores are located in the Southeast region.

As a result, the Company’s business may be more susceptible to regional factors than the operations of more geographically diversified competitors.

These factors include, among others, changes in the economy, weather conditions, demographics and population.

As a result, the Company’s business has been and, in the future, may be, more susceptible to regional factors than the operations of more geographically diversified competitors.

These factors include, among others, changes in the economy, weather conditions and natural disasters, demographics and population.

For example, on September 27, 2024, Hurricane Helene severely impacted western North Carolina, including where the Company’s headquarters are located, resulting in catastrophic flooding and destruction, power and communication outages, major road closures and loss of life.

The storm caused damage to certain of the Company’s properties, including its distribution center and impacted the ability of the Company’s stores to report information to the Company’s headquarters.

Although the Company largely returned to normal operations within a reasonably short period of time following Hurricane Helene, there can be no assurance that future storms impacting the region will not have more severe consequences with respect to the Company’s operations, which could more significantly and adversely impact the Company’s financial position, cash flow and results of operation.

Various aspects of the Company’s business are subject to federal, state and local laws and various operating regulations.

16 unchanged sentences

These estimates can fluctuate if historical trends are not predictive of the future.

The majority of the Company’s properties are self-insured for casualty losses and business interruption;

The majority of the Company’s store properties are self-insured for casualty losses and business interruption;

however, liability coverage is maintained.

1 unchanged sentence

The Company attempts to increase its energy efficiency during store construction and remodeling using energy-saving equipment and construction.

Our business, financial condition and results of operations may be materially adversely affected by a resurgence of the COVID-19

The unprecedented global outbreak of the novel coronavirus (COVID-19) that began in the first quarter of 2020 has adversely impacted economic activity and conditions worldwide, including workforces, liquidity, capital markets, consumer behavior, supply chains and macroeconomic conditions.

While the COVID-19 pandemic was officially declared to have ended in May 2023,and while the direct effects of the COVID-19 pandemic on our business have significantly lessened during the fiscal year ended September 30, 2023, some effects have continued through the fiscal year ended September 30, 2023, and we may continue to be impacted by the continuing effects of the COVID-19 pandemic, including resurgences and variants of COVID-19 or outbreaks of any new viruses or contagions.

These impacts may include difficulties and delays in sourcing, transporting and stocking products:

inabilities to staff our stores and warehouse and distribution facilities at adequate levels to conduct our operations, resulting in store closures or operating hour reductions;

and incurring significant costs in support of our front-line store team members for enhanced benefits, safety measures and government-mandated wage increases.

The extent to which a future COVID-19 outbreak could impact our business and operating results in the future depends on future developments that are highly uncertain and cannot be accurately predicted, including new information that may emerge concerning COVID-19 and variants of the virus and the actions to contain or treat their impact, as well as the impact of any new federal, state and local mandates or other regulations associated with COVID-19.

The Company is subject to risks related to information systems and data security.

1 unchanged sentence

These complex systems are an important part of ongoing operations.

If the Company were to experience disruption in these systems, did not maintain existing systems properly, or did not implement new systems appropriately, operations could suffer.

If the Company were to experience disruption in these systems, did not maintain existing systems properly, or did not

implement new systems appropriately, operations could suffer.

The Company is currently undergoing a systematic program to enhance its information technology abilities.

25 unchanged sentences

Inflation or deflation in energy costs affects the Company’s fuel sales, distribution expenses and plastic supply costs.

During fiscal year 2023, inflation reached its highest level in a number of years, impacting food costs, transportation costs, and labor costs.

Twelve Months Ended

1 unchanged sentence

September 30,

If we are unable to successfully identify market trends and react to changing consumer preferences in a timely manner, our sales

may decrease.

We believe our success depends, in substantial part, on our ability to:

 anticipate, identify and react to fresh, natural and organic grocery and dietary supplement trends and changing consumer preferences and demographics in a timely manner;

 translate market trends into appropriate, innovative, saleable product and service offerings in our stores before our competitors and effectively market these trends to our target customers;

 develop and maintain those relationships that provide us access to the newest on-trend merchandise and customer engagement options on reasonable terms.

Consumer preferences often change rapidly and without warning, moving from one trend to another among many product or retail concepts.

Our performance is impacted by trends regarding healthy lifestyles, product attributes, dietary preferences, convenient options, fresh, natural and organic products, meal solutions, ingredient transparency and sustainability, and vitamins and supplements, as well as new and evolving methods of engaging with and delivering our products to our customers.

Consumer preferences might shift as a result of, among other things, economic conditions, food safety perceptions, scientific research or findings regarding the benefits or efficacy of such products, national media attention and the cost, attributes or sustainability of these products.

A change in consumer preferences away from our offerings would have a material adverse effect on our business.

Additionally, negative publicity over the safety, efficacy or benefits of any such items, may adversely affect demand for our products, and could result in lower customer traffic, sales, results of operations and cash flows.

If we are unable to anticipate and satisfy consumer preferences with respect to product offerings and customer engagement options, our sales may decrease, which could have a material adverse effect on our business, financial condition, results of operations and cash flows.

Risk Related to Ownership of Our Common Stock

7 unchanged sentences

As a result, the Company is exempt from certain of NASDAQ’s corporate governance policies, including the requirements that the majority of Directors be independent (as defined in NASDAQ Rules), and that the Company have a nominating committee for Director candidates.

UNRESOLVED STAFF COMMENTS

CYBERSECURITY

Not currently applicable.

The market price and trading volume of our Class A Common Stock may be volatile and could decline significantly.

The market price of our Class A Common Stock may be highly volatile and could be subject to wide fluctuations.

Securities markets worldwide experience significant price and volume fluctuations.

This market volatility, as well as general economic, market or political conditions, could reduce the market price of shares of our Class A Common Stock regardless of our operating performance.

The trading price of our Class A Common Stock may be adversely affected due to a number of factors, most of which we cannot predict or control, such as the following:

• fluctuations in our operating results;

• a decision by the Board of Directors to reduce or eliminate cash dividends on our common stock;

• changes in recommendations or earnings estimates by securities analysts;

• general market conditions in our industry or in the economy as a whole;

• natural disasters, including the impact of severe weather;

• political instability, war or events of terrorism.

The payment of dividends on our common stock is at the discretion of our Board of Directors and is not guaranteed.

The amount of future dividends that we will pay, if any, will depend upon a number of factors.

Future dividends will be declared and paid at the sole discretion of the Board of Directors and will depend upon such factors as cash flow generated by operations, profitability, financial condition, cash requirements, future prospects, and other factors deemed relevant by our Board of Directors.

The right of our Board of Directors to declare dividends, however, is subject to the availability of sufficient funds under North Carolina law to pay dividends.

Additionally, the payment of cash dividends is subject to restrictions contained in certain of our financing arrangements.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1A. Risk Factors