Company Reports

George Weston’s strategy is ultimately tethered to Loblaw (98% of revenue), its controlling retail subsidiary, which we do not view as competitively advantaged. Although the holding company also controls Choice Properties, a real estate investment trust that contributes just shy of 20% of EBIT, this property portfolio relies heavily on Loblaw, which accounts for nearly two-thirds of its revenue. Consequently, we view George Weston as a proxy for Loblaw, and its success depends on the retailer’s ability to defend its market standing.

George Weston is effectively a holding company for Loblaw and Choice Properties. Loblaw generates 98% of consolidated sales and anchors the REIT's rental income. While diversification into pharmacy and real estate provides incremental upside, mounting retail competition persists.

George Weston's second-quarter results included a 4.1% increase in revenue and an adjusted EPS of CAD 1.08 (up 10.2%). Adjusted EBITDA grew 6.1%, driving a 30-basis-point margin expansion to 12.8%, fueled by top-line growth across both the Loblaw and Choice Properties subsidiaries.

George Weston reported first-quarter revenue growth of 4.2% to CAD 14.6 billion, driven by a 4.2% sales lift at subsidiary Loblaw (99% of sales). Adjusted EBITDA increased 6.2% to CAD 1.7 billion, with the margin 30 basis points higher to 11.7%, benefiting from operating leverage.

As the majority shareholder of Canada’s largest retailer, Loblaw, and the leading real estate investment trust, Choice Properties, George Weston capitalizes on resilient consumer demand for groceries and drugstore services and benefits from synergies between the two operating subsidiaries. We view its financial performance as anchored by steady dividends and distributions from the retail and property arms. However, we don’t think the firm has a durable competitive edge based on our no-moat rating on Loblaw, which makes up 99% of revenue and 85% of profits for the holding company.

As the majority shareholder of Canada’s largest retailer, Loblaw, and the leading real estate investment trust, Choice Properties, George Weston capitalizes on resilient consumer demand for groceries and drugstore services and benefits from synergies between the two operating subsidiaries. We view its financial performance as anchored by steady dividends and distributions from the retail and property arms. However, we don’t think the firm has a durable competitive edge based on our no-moat rating on Loblaw, which makes up 99% of revenue and 85% of profits for the holding company.

George Weston's sales rose 11% in the fourth quarter on 3% sales growth in subsidiary Loblaw (99% of sales) for the comparable period and an extra week. Adjusted EBITDA margin was flat at 10.5%.

George Weston grew revenue by 5% in the third quarter of 2025, led by expansion in subsidiary Loblaw (99% of total sales) in both food retail (up 5%) and drug store (4%). Adjusted EBITDA rose 8% as margins widened by 50 basis points to 12%.

As the majority shareholder of Canada’s largest retailer Loblaw and the leading real estate investment trust Choice Properties, George Weston capitalizes on resilient consumer demand for groceries and drugstore services and benefits from synergies between the two operating subsidiaries. We view its financial performance as anchored by steady dividends from the retail and property arms, but don’t think the firm has a durable competitive edge based on our no-moat rating on Loblaw, which makes up the bulk of revenue and profits for the holding company.

George Weston reported a 5% increase in revenue for the second quarter of 2025, driven by growth in its subsidiary, Loblaw (which accounts for 99% of total sales), in both food retail (up 6%) and drugstore (4%). Adjusted EBITDA rose 6.5% as margins widened 20 basis points to 13%.

George Weston's sales grew 4% in the first quarter of 2025, led by expansion in subsidiary Loblaw (99% of sales). Adjusted operating profit rose 5% as margins widened by 10 basis points to 8.3%.

As the majority shareholder of Canada’s largest retailer Loblaw as well as leading real estate investment trust Choice Properties, George Weston capitalizes on resilient consumer demand for groceries and pharmacy services, and benefits from synergies between the two operating subsidiaries. We view its financial performance as anchored by steady dividends from the retail and property arms, but don’t think the firm has a durable competitive edge based on our no-moat rating on Loblaw, which makes up the bulk of revenue and profits for the holding company.

We plan to raise our CAD 185 fair value estimate for no-moat George Weston by a mid-single-digit percentage after digesting better-than-expected 2024 results. Shares look overvalued despite our planned valuation increase. The firm's 2024 sales of CAD 62 billion matched our estimates, while adjusted EBITDA of CAD 7.4 billion was 5.7% higher than our forecast (CAD 7.0 billion). In the coming years, we maintain our view that, amid normalizing food inflation and rising value preference among shoppers, a low-single-digit annual sales growth rate is realistic for main subsidiary no-moat Loblaw (over 90% of total sales). The other subsidiary, Choice Properties, may see a similar trajectory given its high exposure to tenants associated with Loblaw, but diversification into industrial assets could brighten its growth outlook.

We plan to maintain our CAD 185 per share fair value estimate for no-moat George Weston after absorbing its third-quarter results, with sales and adjusted EBITDA up 1.5% and 6.9%, respectively. As food prices continue to normalize, our view remains in place that main subsidiary no-moat Loblaw (over 90% of total sales) will see its sales trajectory reverting to the low-single-digit range consistent with historical averages. The other subsidiary, Choice Properties, may also see sales moderating given its significant sales exposure to tenants associated with Loblaw, despite a slightly better outlook in its industrial portfolio. On a consolidated basis, we continue to expect the firm to deliver low-single-digit sales growth and a 6% operating margin over the next 10 years; shares look overvalued.

As the majority shareholder of Canada’s largest retailer Loblaw as well as leading real estate investment trust Choice Properties, George Weston capitalizes on resilient consumer demand for groceries and pharmacy services, and benefits from synergies between the two operating subsidiaries. We view its financial performance as anchored by steady dividends from the retail and property arms, but don’t think the firm has a durable competitive edge based on our no-moat rating on Loblaw, which makes up the bulk of revenue and profits for the holding company.

We plan to maintain our CAD 175 per share fair value estimate for no-moat George Weston after absorbing its second-quarter results, including sales and adjusted EBITDA up 1.5% and 4.2%, respectively. As food CPI dipped below 2% in Canada and the normalizing trends will likely hold, we expect main subsidiary (over 90% of total sales) no-moat Loblaw’s sales trajectory will revert to the low-single-digit range, consistent with historical averages. George Weston’s other subsidiary, Choice Properties, should also have moderating sales given macro headwinds and significant exposure to tenants associated with Loblaw. On a consolidated basis, our 10-year forecast for George Weston to deliver low-single-digit sales growth and a 6% adjusted operating margin are unchanged, and we view shares as overvalued.

We plan to maintain our CAD 175 per-share fair value estimate for no-moat George Weston after analyzing its first-quarter results, with sales and adjusted EBITDA up 5% and 7% respectively. We attribute the solid performance to that of its main subsidiary no-moat Loblaw (over 90% of total sales and profits), which has sharpened the value focus in grocery and pharmacy retail to appeal to financially constrained Canadian shoppers. The other subsidiary, Choice Properties, also managed to deliver steady revenue and profit growth despite macro headwinds thanks to its strategic focus on necessity-based retailers and logistics providers. We maintain our 10-year average projections for low-single-digit sales and a 6% adjusted operating margin, and view shares as overvalued.

As the majority shareholder of Canada’s largest retailer Loblaw and leading real estate investment trust Choice Properties, George Weston capitalizes on resilient consumer demand for groceries and pharmacy services, and benefits from synergies between the two operating subsidiaries. We view its financial performance as anchored by steady dividends from the retail and property arms, but we don’t think the firm has a durable competitive edge based on our no-moat rating on Loblaw, which makes up the bulk of revenue and profits for the holding company.

We don’t plan any material changes to our CAD 168 fair value estimate for no-moat George Weston after absorbing mixed 2023 results, with sales growth of 5.4% edging our estimate (5.2%), but the adjusted EBITDA increase of 6.1% missing our 8.5% projection. We think main subsidiary no-moat Loblaw (over 90% of George Weston sales and EBITDA) has preserved its competitive standing in grocery and pharmacy retail by focusing on private-label offerings, discount formats, and wellness-focused products and services while investing prudently in digital marketing, loyalty programs, and e-commerce capabilities. Meanwhile, the disciplined approach of its other subsidiary, Choice Properties, in maintaining a high-quality client base of necessity-based retailers and logistics providers has helped maintain steady revenue and income growth despite a soft macro backdrop. We see no need to change our 10-year projections for low-single-digit sales compound annual growth rate and a 6% adjusted operating margin on average and view shares as overvalued.

We don’t plan a material change to our CAD 168 fair value estimate for no-moat George Weston, considering that third-quarter results from no-moat Loblaw, which provides 99% of revenue, matched our forecasts: Sales advanced 5% and adjusted EPS rose 12%. George Weston shares trade in a range we consider to be fully valued, and as such, we’d suggest investors remain on the sidelines.